From the Intertemporal Choice Model, many theories (non-Keynesian theories of Consumption) came into being. Using graphical and mathematical expressions, compare and contrast the following theories on consumption behaviours: i. Franco Modigliani: Life-Cycle Hypothesis ii. Milton Friedman: Permanent-Income Hypothesis iii. Robert Hall: Random Walk Hypothesis
From the Intertemporal Choice Model, many theories (non-Keynesian theories of Consumption) came into being. Using graphical and mathematical expressions, compare and contrast the following theories on consumption behaviours: i. Franco Modigliani: Life-Cycle Hypothesis ii. Milton Friedman: Permanent-Income Hypothesis iii. Robert Hall: Random Walk Hypothesis
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section: Chapter Questions
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b. From the Intertemporal Choice Model, many theories (non-Keynesian theories of
Consumption) came into being. Using graphical and mathematical expressions, compare
and contrast the following theories on consumption behaviours:
i. Franco Modigliani: Life-Cycle Hypothesis
ii. Milton Friedman: Permanent-Income Hypothesis
iii. Robert Hall: Random Walk Hypothesis
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