Consumption and Savings
About the Lecture
The lecture Consumption and Savings by James DeNicco is from the course Principles of Macroeconomics (EN). It contains the following chapters:
- Definitions of Savings
- Savings Life Cycle
- Two Period Consumer Model
- The Model As a Graph
- Recap of Consumptions and Savings
Included Quiz Questions
Savings is defined as:
- Current income minues current consumption.
- The value of assets minus the value of liabilities.
- Increases in the value of an asset.
- Decreases in the value of an asset.
The theory of consumption smoothing states that:
- Consumers like smooth and balanced consumption levels over time.
- Consumers desire equal amounts of consumption in every period.
- Consumers want to save all their money until retirement.
- Consumers desire to have a stable path of consumption.
According to the "Two Period Consumer Model", the effect from an increase in current income is:
- C1 increases; C2 increases; Savings increase
- C1 decreases; C2 decreases; Savings decrease
- C1 increase; C2 increase; Savings decrease
- C1 decreases; C2 decreases, Savings increase
In the "Two Period Consumer Model", the Wealth Effect from a decrease in the interest rate for a net borrower is:
- C1 increases; C2 increases; Savings decrease
- C1 increases; C2 increases; Savings increase
- C1 decreases; C2 decreases; Savings decrease
- C1 decreases; C2 increases; Savings increase
Author of lecture Consumption and Savings
James DeNicco
Customer reviews
5,0 of 5 stars
| 5 Stars |
|
5 |
| 4 Stars |
|
0 |
| 3 Stars |
|
0 |
| 2 Stars |
|
0 |
| 1 Star |
|
0 |
