SOLUTION: Regarding the Milton Permanent Income Hypothesis Friedman, calculate permanent income, transitory income, consumption, and saving for t = (1, 2, 3 and 4). Take into account that:

Question 1130277: Regarding the Milton Permanent Income Hypothesis
Friedman, calculate permanent income, transitory income, consumption, and saving for t = (1, 2, 3 and 4). Take into account that:
𝑌1 = 2000 + 200
𝑌2 = 2100
𝑌3 = 2200
𝑌4 = 2300
𝐶𝑡 = α𝑌𝑡𝑃
β = 0.2
α = 0.8
Observation:
the "t" in the "ct" is in the denominator of the "y" and the "p" is in the exponent.
Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website!
.

We, the tutors of this forum, are not specialists in this very highly specialized Finance area.

It is FAR OUTSIDE of our specialization and from the profile of this forum.

Find another, more appropriate site/forum for this question.

RELATED QUESTIONS
Given the following national income data National income = 22100 $ Wages and salaries = (answered by ikleyn)

A�s income is rs.140 more than B�s & C�s income rs.80 more than D�s . If the ratio of A�s (answered by Theo)

a teacher has an income of 28500 dollar and pays 3135 dollar in income tax.what percent... (answered by ikleyn)

My text book is asking a question that I have no idea how to answer. It says... (answered by jim_thompson5910)

a man spends 1/4 of his income on food,1/5 on rent and the rest Rs.231 on their items.... (answered by josmiceli)

For an income over $10,000 a state charges a fixed tax of $300 plus 6.5% of the income in (answered by ikleyn)

the annual income of a bank clerk is N240,000. his income tax is charged at 10 percent... (answered by ewatrrr)

Could you please help me to solve this problem? Suppose national consumption, C, is $18... (answered by edjones)

John and Musa income 5:3 John income increases by 12% John income is 5600 and the total... (answered by greenestamps)