Suppose That a Family Saves and Borrows to Buffer Itself

question 431

Multiple Choice

Suppose that a family saves and borrows to buffer itself against changes in income. These actions relate to which problem in measuring inequality?

• A)in-kind transfers
• B)negative income tax
• C)transitory versus permanent income
• D)economic mobility

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Definitions:

Region Of The Country

A specific geographical area within a country, distinguished by certain characteristics, such as culture, climate, or economic activity.

Bureau Of Labor Statistics

A governmental body in the United States responsible for gathering, processing, analyzing, and distributing crucial statistical information about the labor market, employment conditions, and variations in economic prices.

Business Establishments

Places of business where commercial, industrial, or professional activities are conducted, often referring to a physical location.

Frictional Unemployment

Short-term unemployment that occurs when people are between jobs or entering the labor force for the first time.