True or false? Why? "The marginal propensity to consume out of transitory income is greater than the marginal propensity to consume out of permanent income."
True or false? Why? "The marginal propensity to consume out of transitory income is greater than the marginal propensity to consume out of permanent income."
Chapter23: The Aggregate Expenditure Model
Section: Chapter Questions
Problem 6P
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True or false? Why?
"The marginal propensity to consume out of transitory income is greater than the marginal propensity to consume out of permanent income."
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