Question: Question 1 a)How is saving defined? b)Explain how the consumption ratio can be over 100% (of disposable income). Question 2 Explain the 'permanent income' theory

Question 1

a)How is saving defined?

b)Explain how the consumption ratio can be over 100% (of disposable income).

Question 2

Explain the 'permanent income' theory of household consumption expenditure.

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