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explain why changes in consumption are unpredictable if consumer obey the permanent income hypothesis and have rational expectations? explain in detail.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter17: The Trade-off Between Inflation And Unemploy

Section: Chapter Questions

Problem 6DQ

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explain why changes in consumption are unpredictable if consumer obey the permanent income hypothesis and have rational expectations? explain in detail.

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chapter 14

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