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Consumption — Keynesian Model: True, False or Uncertain? #Shorts
True, False, or Uncertain? Test yourself on Consumption. Statement: If a consumer expects a big promotion and raise next year, the Keynesian model predicts more spending today. Answer: FALSE The Keynesian model uses only current income; it's the Permanent Income/Life-Cycle models that predict spending up today. Subscribe to Macro Economics with ...
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