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6. Answer both parts (a) and (b) of this question. (a) [9 marks] Explain Keynes' three conjectures about the consumption
Posted: Thu May 26, 2022 7:42 am
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- 6 Answer Both Parts A And B Of This Question A 9 Marks Explain Keynes Three Conjectures About The Consumption 1 (76.28 KiB) Viewed 25 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.