The Two Primary Explanations for the Excess Volatility of Consumption

question 62

Multiple Choice

The two primary explanations for the excess volatility of consumption are

• A) consumers' limited life spans and credit market imperfections.
• B) credit market imperfections and changes in market prices.
• C) changes in market prices and distorting taxes.
• D) distorting taxes and consumers' limited life spans.
• E) changes in market prices and consumer's limited life spans.

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Definitions:

PhCHCN

Stands for acetophenone's chemical formula, referring to a compound with a benzene ring attached to a methyl ketone.

Hex-1-ene

A hydrocarbon compound with the molecular formula C6H12, characterized by the presence of a double bond between the first and second carbon atoms.

IR Absorption

The process where molecules absorb infrared light at specific frequencies, causing vibrational changes, used in spectroscopy for substance identification.

Carbonyl Stretch

Refers to the vibration of the carbon-oxygen double bond in the infrared spectroscopy region, often used to identify carbonyl-containing functional groups in organic compounds.