In January 2017, the National RetailFederation reported that "Holiday retail salesduring November and December increased 4percent over 2015 to $658.3 billion." TheNRF's chief economist "noted that averagehourly earnings were up in 2016 over 2015 ...home values have also increased and the risingstock market has increased the value ofconsumers' investments."Which models of consumption behavior wasthe economist referring to?O Keynesian consumption model andprecautionary savings model.O Keynesian consumption model and Modigliani'slife cycle model.O Inventory cycle model and Modigliani's life cyclemodel.O Precautionary savings model and Friedman's.permanent income model

Consumption behavior insinuates the exercises and decisions that people and households make as for…

In January 2017, the National Retail Federation reported that "Holiday retail sales during November and December increased 4 percent over 2015 to $658.3 billion." The NRF's chief economist "noted that average hourly earnings were up in 2016 over 2015 ... home values have also increased and the rising stock market has increased the value of consumers' investments."

In January 2017, the National Retail Federation reported that "Holiday retail sales during November and December increased 4 percent over 2015 to $658.3 billion." The NRF's chief economist "noted that average hourly earnings were up in 2016 over 2015 ... home values have also increased and the rising stock market has increased the value of consumers' investments."

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 2TY

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In January 2017, a report from the National Retail Federation said that “Holiday retail sales during November and December increased 4 percent over 2015 to $658.3 billion.” The NRF’s chief economist “noted that average hourly earnings were up in 2016 over 2015 … home values have also increased and the rising stock market has increased the value of consumers’ investments.” Which models of consumption behavior was the economist referring to? Precautionary savings model and Friedman’s permanent income model Keynesian consumption model and Modigliani’s life cycle model. Inventory cycle model and Modigliani’s life cycle model. Keynesian consumption model and precautionary savings model.
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