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:
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Friedman, calculate permanent income, transitory income, consumption, and saving for t = (1, 2, 3 and 4). Take into account that:
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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):
