6 Answer Both Parts A And B Of This Question A 9 Marks Explain Keynes Three Conjectures About The Consumption 1 (17.4 KiB) Viewed 20 times
(a) Explain Keynes' three conjectures about the consumption function. Describe
the evidence that is consistent with these conjectures and the evidence that is
inconsistent with them.
(b) Compare and contrast the Life Cycle Hypothesis with the Permanent
Income Hypothesis. Which of these two hypotheses do you think deals more
satisfactorily with the well known
"consumption puzzle"? Explain.
6 Answer Both Parts A And B Of This Question A 9 Marks Explain Keynes Three Conjectures About The Consumption 2 (17.4 KiB) Viewed 20 times
6. Answer both parts (a) and (b) of this question. (a) [9 marks] Explain Keynes' three conjectures about the consumption function. Describe the evidence that is consistent with these conjectures and the evidence that is inconsistent with them. (b) [16 marks] Compare and contrast the Life Cycle Hypothesis with the Permanent Income Hypothesis. Which of these two hypotheses do you think deals more satisfactorily with the well known "consumption puzzle"? Explain.
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