Why will the short-run consumption function be different from the long-run consumption function?
Answer to relevant QuestionsWhat factors could explain why some countries have a higher multiplier than others?What enables banks safely to engage in both maturity transformation and risk transformation?Controlling the money supply is sometimes advocated as an appropriate policy for controlling inflation. What implications do different assumptions about the relationships between M and V, and M and Y, in the equation MV =PY ...What would cause (a) a steep ADI curve; (b) a gently sloping ADI curve? Compare the short-run and longrun effects of (i) a temporary adverse supply shock and (ii) a permanent supply reduction under each of (a) and (b).What is Good hart’s law? How is it relevant to(a) Monetary policy; (b) Using assignment grades to assess a student’s ability; (c) Paying workers according to the amount of output they produce;(d) Awarding local authority ...
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