Why is a distinction made between a short-run marginal propensity to consume and a long-run marginal propensity

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Why is a distinction made between a short-run marginal propensity to consume and a long-run marginal propensity to consume in the permanent-income hypothesis (PIH)?

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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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Question Posted: Dec 09, 2015 03:23 AM

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Why is a distinction made between a short-run marginal propensity to consume and a long-run marginal propensity

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The PIH suggests that people base their spending patte...View the full answer

Macroeconomics

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