Explain the presence of precautionary or buffer-stock saving

Reference no: EM131144799

What assumption(s) regarding consumers' knowledge and behavior in the life-cycle- permanent-income hypothesis do we need to change in order for it to explain the presence of precautionary, or buffer-stock, saving? Do these assumptions, in your opinion, bring the model closer to or further from the world as you know it?

Reference no: EM131144799

Questions Cloud

Add a new customer to our list of customers : List the rental identification number, make, model, year, classification, and rental duration for each of our locations for the month of October, 2015.

History of database management systems : What are databases, history of database management systems, a list of the various database architectures, and explain data normalization, including the “normal forms” and why they are needed. From Laundon and Laundon 14e

Determine how you will price your product or service : Determine how you will price your product or service. Talk about how you expect to remain competitive with your pricing and still earn a return on your investment. How will your product price compare to the competition? Don't forget to take all of..

Modern civilization : What does Benedict mean when she says, “Modern civilization, from this point of view, becomes not a necessary pinnacle of human achievement but one entry in a long series of possible adjustments”?

Explain the presence of precautionary or buffer-stock saving : Do these assumptions, in your opinion, bring the model closer to or further from the world as you know it?

Internal scan-utilizing the financial ratios spreadsheet : Internal Scan – what are the internal strengths and weaknesses of Spirit Airlines relative to critical success factors, the competition, and the environment? (Include financial ratios, utilizing the Financial Ratios Spreadsheet provided under Course ..

Describe three macroeconomic variables in the united states : Describe three macroeconomic variables in the United States that impact the supply and demand of your chosen product or service. Using graphs in Excel, interpret the trends of the three selected macroeconomic variables for the past three years.

Why investment expenditure increase as interest rate decline : Explain why the following investment expenditures increase as the interest rate declines? (Be precise and to the point. Your assignment must be 130 words or less).

What interest rate would be needed on pound securities : What interest rate would be needed on pound securities, such as government bonds, for you to be willing to buy those securities with your dollars today and then sell them in a year in exchange for dollars?

User Account

All Pages