Please answer as soon as possible.

1. Explain why consumption is not constant across time, under the per- manent income hypothesis with uncertainty. What happens instead? 3 points 2. If both the Keynesian consumption function and the permanent income hypothesis t the same data, why should anyone care which one is the best explanation? 3 points 3. Give an example of an income change for which 15' is likely to be close to zero. 3 points 4. Find an example of an economic observation that can be plausibly explained in multiple ways. i) Outline each potential explanation. 3 points ii) Explain why it matters which explanation is correct. 3 points