The Two Primary Explanations for the Excess Volatility of Consumption

question 68

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:

Interdependent View

A perspective that emphasizes the interconnectedness and reliance of individuals within a group or society.

Cultural Concept

Ideas or beliefs shared among a group of people which influence behaviors, values, and norms within their society.

Narcissistic

Pertaining to narcissism, a personality trait characterized by an inflated sense of self-importance, need for admiration, and a lack of empathy for others.

Extraverted

A personality trait characterized by high levels of outgoingness, sociability, and energy in social situations.