How do the life-cycle and permanent-income hypotheses resolve the seemingly contradictory pieces of evidence regarding consumption behaviour?
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Both the lifecycle and permanentincome hypotheses emphasize that an individuals time horizon is longer than a single year Thus consumption is not simp...View the full answer
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Related Book For 
Macroeconomics
ISBN: 978-1464168505
5th Canadian Edition
Authors: N. Gregory Mankiw, William M. Scarth
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