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Average propensity of consumption in the long-run

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The average propensity of consumption in the long-run is considered to be stable under the Life Cycle Hypothesis (LHC) and Permanent Income Hypothesis (PIH). Explain why?

Reference no: EM132290957

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Average propensity of consumption in the long-run : The average propensity of consumption in the long-run is considered to be stable under the Life Cycle Hypothesis (LHC) and Permanent Income Hypothesis (PIH).
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