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The permanent income hypothesis is consitent with cross-section and time-series data because a. higer-income households are savers, since their current income includes positive transistory conponents. O b. higer-income households are savers, since their current income includes negative transistory conponents. c. lower-income households are dissavers, since their current income includes positive transistory components. O d. lower-income households are savers, since their current income includes negative transistory conponents.

The permanent income hypothesis is consitent with cross-section and time-series data because a. higer-income households are savers, since their current income includes positive transistory conponents. O b. higer-income households are savers, since their current income includes negative transistory conponents. c. lower-income households are dissavers, since their current income includes positive transistory components. O d. lower-income households are savers, since their current income includes negative transistory conponents.

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 18P
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The permanent income hypothesis is consitent with cross-section and time-series data because a. higer-income households are savers, since their current income includes positive transistory conponents. O b. higer-income households are savers, since their current income includes negative transistory conponents. c. lower-income households are dissavers, since their current income includes positive transistory components. O d. lower-income households are savers, since their current income includes negative transistory conponents.
Transcribed Image Text:The permanent income hypothesis is consitent with cross-section and time-series data because a. higer-income households are savers, since their current income includes positive transistory conponents. O b. higer-income households are savers, since their current income includes negative transistory conponents. c. lower-income households are dissavers, since their current income includes positive transistory components. O d. lower-income households are savers, since their current income includes negative transistory conponents.
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