The permanent-income theory of consumption implies that Multiple Choice the short-run multiplier is smaller than the long-run multiplier the short-run multiplier is larger than the long-run multiplier

The permanent-income theory of consumption implies that Multiple Choice the short-run multiplier is smaller than the long-run multiplier the short-run multiplier is larger than the long-run multiplier

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The permanent-income theory of consumption implies that
Multiple Choice
O
the short-run multiplier is smaller than the long-run multiplier
the short-run multiplier is larger than the long-run multiplier
the short-run multiplier is identical to the long-run multiplier
the long-run multiplier is equal to 1
the short-run multiplier is less than 1

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