Aggregate consumption varies less than aggregate investment. Briefly explain why this is true assuming that consumption and investment decisions are taken by rational and forward-looking agents.
Aggregate consumption varies less than aggregate investment. Briefly explain why this is true assuming that consumption and investment decisions are taken by rational and forward-looking agents.
Chapter14: Aggregate Demand And Supply
Section: Chapter Questions
Problem 2SQ
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Aggregate consumption varies less than aggregate investment. Briefly explain why this is true assuming that consumption and investment decisions are taken by rational and forward-looking agents.
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