According to Friedman,the Apparent Conflict Between Cross-Section Data Which Shows

question 9

Multiple Choice

According to Friedman,the apparent conflict between cross-section data which shows a saving rate that varies with income group and time-series data which shows that the saving ratio over the past century is fairly constant is resolved by

• A)pointing out that cross-section and time-series data are not comparable.
• B)interpreting the low saving of poor people as due to the fact that they must buy necessities.
• C)interpreting the high saving of rich people as due to the transitory nature of much income earned by the rich.
• D)distinguished between a permanent marginal propensity to consume and a transitory marginal propensity to consume.

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Definitions:

Inventory

The total amount of goods and materials held in stock by a company, intended for sale or production.

Initial Cash Flow

The amount of cash inflow or outflow at the beginning of a project or investment, setting the basis for future financial analysis.

Equipment Modifications

Changes or adjustments made to machinery or equipment to suit specific needs or improve efficiency.

Grading And Excavation

The process of moving earth, soil, and rock to create a level base for construction projects or to achieve the desired landscaping design.