According to the Forward-Looking Model, Consumption

question 151

Multiple Choice

According to the forward-looking model, consumption

• A)reacts mostly to a permanent change in income.
• B)reacts mostly to a temporary change in income.
• C)reacts equally to permanent or temporary changes in income.
• D)is always subject to a liquidity constraint.
• E)does not react to either temporary or permanent changes in income.

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Definitions:

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Visual image or representation formed in the mind that reflects what is perceived or thought by an individual.

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The reduction in the value of a currency with respect to other monetary units, or a decrease in the worth or perception of value of something.

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Traditional terms used to denote the male and female heads or dominant individuals in hierarchical relationships, often within historical, BDSM, or servitude contexts.