QUESTION 4 Which of the following statements are true (there may be more than one correct answer): O a. Consumption expenditures of an average U.S. household go up from mid-20s to mid-40s and then go down O b. Data evidence suggests that people adjust their consumption in response to income shocks O c. Data evidence suggests that people adjust their consumption in response to wealth shocks but their marginal propensity to consume out of wealth is lower

QUESTION 4 Which of the following statements are true (there may be more than one correct answer): O a. Consumption expenditures of an average U.S. household go up from mid-20s to mid-40s and then go down O b. Data evidence suggests that people adjust their consumption in response to income shocks O c. Data evidence suggests that people adjust their consumption in response to wealth shocks but their marginal propensity to consume out of wealth is lower

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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