Unformatted text preview: both countries. A) Decreasing; increasing. B) Increasing; decreasing. C) Increasing; roughly the same. D) Decreasing; roughly the same. Solutions: C) 3. A salary survey (payscale.com) shows that the average starting salary is $48,800 for economics major and $38,600 for the marketing major. According to the intertemporal optimization model, an economics student should ____ than a marketing student while in school. A) work harder B) consume more C) feel better D) save more Solutions: B) Note the answer is NOT D) because a higher income does not necessarily mean a higher saving in the intertemporal optimization problem....
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This note was uploaded on 02/13/2012 for the course ECON 410 taught by Professor Hernandez-verme during the Spring '08 term at Texas A&M.
- Spring '08
- Marginal Propensity To Consume