A. B. Reference: Ref 12-1 The permanent income hypothesis suggests that consumer

Question

A.

B.

Reference: Ref 12-1

The permanent income hypothesis suggests that consumer: spending depends on income people expect over the long term rather than on current income. spending is made up of an autonomous amount and an amount dependent upon disposable income. saving depends on one's lifetime income. spending is smoothed each month in response to changes in their current disposable income. The permanent income hypothesis suggests that consumer: spending depends on income people expect over the long term rather than on current income. spending is made up of an autonomous amount and an amount dependent upon disposable income. saving depends on one's lifetime income. spending is smoothed each month in response to changes in their current disposable income. Reference: Ref 12-1 (Figure: Aggregate Demand) Using the accompanying figure, the quantity of output demanded if the price level is 120 is: $ 11 trillion $ 10 trillion $ 9 trillion $ 12 trillion

Explanation / Answer

spending depends on income people expect over the long term rather than on current income.-----correct answer---------100%sure

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$10 trillion.--------correct answer---------100%sure

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