Business, 29.11.2020 14:50 yeseniabustillos24
In the construction of the IS curve we assumed that Consumption depends on potential income, rather than on actual income. What is the justification for this?
a. The Ricardian Equivalence
b. Fisher's Equation.
c. The Permanent Income Hypothesis.
d. The Classical Dichotomy.
Answers: 2
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In the construction of the IS curve we assumed that Consumption depends on potential income, rather...
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