While Modigliani's LCH Is Similar to Friedman's PIH in Several

question 42

Multiple Choice

While Modigliani's LCH is similar to Friedman's PIH in several ways,it does differ in that it

• A)assumes individuals base their consumption decisions on a time span greater than one year.
• B)assumes that individuals prefer to maintain a stable consumption pattern.
• C)attempted to reconcile the seemingly paradoxical cross-section and time-series empirical data.
• D)gives an important role to assets as a determinant of consumption behavior.

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Definitions:

Filter Circuit

An electronic circuit used to remove unwanted components of a signal, such as noise, or to extract useful parts of the signal, like certain frequencies.

Opposition

In electrical terms, it usually refers to resistance or any impedance to the flow of electric current, hindering the efficient transmission of energy.

Bandpass Filters

Pass a range of frequencies.

Benjamin Rush

A signer of the Declaration of Independence and a prominent physician and educator, known for his contributions to American medical history and advocacy for public health measures.