A consumption smoothing practice question
USING r = .08 FOR HOMER (instead of (-0.04), HIS CURRENT CONSUMPTION WOULD FALL FROM 296.7 to 295, a negative 1.7 adding the negative 6.5 from Dagwood equals a negative 8.2. yes, consistent with pic! c) (5 points) Are your results in b) consistent with this passage, why or why not? ................
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