The success of the "Save More Tomorrow" program assumes that consumers:
A) smooth consumption over their life cycles.
B) save a constant fraction of their permanent incomes.
C) require help controlling their desires for instant gratification.
D) save only their transitory incomes.
Correct Answer:
Verified
Q24: Milton Friedman argued that, over long periods
Q25: Transitory income is:
A)disposable income.
B)average income.
C)random deviations from
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Q32: If consumers correctly anticipate their future incomes:
A)the
Q34: Whether workers must "opt into" or "opt
Q64: According to the permanent-income hypothesis, if consumers
Q67: Milton Friedman viewed current income as the
Q68: According to the permanent income hypothesis, households
Q70: If consumers obey the permanent-income hypothesis and
Q86: Recent work on the consumption function suggests
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