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Both the PIH and the LCH predict that

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Both the PIH and the LCH predict that

Both the PIH and the LCH predict that
A) the sum of saving and consumer durable purchases should increase in relation to personal income in booms and fall in recessions.
B) the sum of saving and consume nondurable purchases should increase in relation to personal income in booms and fall in recessions.
C) the sum of saving and consumer durable purchases should decrease in relation to personal income in booms and increase in recessions.
D) saving should increase in relation to personal income in booms and fall in recessions, but that consumer durables tend to behave in a more stable manner over a cycle.

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Macroeconomics

Edition: 12^th

Author: Gordon

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