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Characteristic of consumption; consumption does not change enough in response to unpredictable changes in income.liquidity constraint b. excess...

Characteristic of consumption; consumption does not change enough in response to unpredictable changes in income.

 

a. liquidity constraint

b. excess sensitivity

c. excess smoothness

d. myopia


. Constraints on people's ability to borrow money at the market interest rate are referred to as

 

a. liquidity constraints

b. budget constraints

c. myopia

d. bequests

Top Answer

Question 1 The correct option is: a. liquidity constraint In the presence of liquidity constraints consumers cannot borrow... View the full answer

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