One of the Findings of Studies in Behavioral Economics Is

question 33

Multiple Choice

One of the findings of studies in behavioral economics is that:

• A) business cycles have no impact on consumption patterns.
• B) Ricardian equivalence is more prevalent than previously thought.
• C) transitory income has no effect on consumption.
• D) consumption is more sensitive to current income changes than suggested by the permanent-income hypothesis.
• E) people tend to put greater emphasis on future income than on current income.

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Definitions:

Ballot Initiative

A process that allows citizens to propose and vote on legislation or amendments to state constitutions directly, bypassing the state legislature.

Grassroots Amendment

An alteration or addition to a constitution or law proposed or initiated by citizens or lower-level organizations rather than government officials.

Referendum

A referendum is a direct vote in which an electorate is asked to either accept or reject a particular proposal, which can be a new law, a policy change, or a constitutional amendment.

Recreational Marijuana

Cannabis used for enjoyment rather than for medical purposes, legalized in some jurisdictions under specific regulations.