From the Intertemporal Choice Model, many theories (non-Keynesian theories of Consumption) came into being. Using graphical and mathematical expressions, compare and contrast the following theories on consumption behaviours: Franco Modigliani: Life-Cycle Hypothesis Milton Friedman: Permanent-Income Hypothesis i. ii. Robert Hall: Random Walk Hypothesis ii.

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Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
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b. From the Intertemporal Choice Model, many theories (non-Keynesian theories of
Consumption) came into being. Using graphical and mathematical expressions, compare
and contrast the following theories on consumption behaviours:
i.
Milton Friedman: Permanent-Income Hypothesis
Robert Hall: Random Walk Hypothesis
Franco Modigliani: Life-Cycle Hypothesis
ii.
iii.
Transcribed Image Text:b. From the Intertemporal Choice Model, many theories (non-Keynesian theories of Consumption) came into being. Using graphical and mathematical expressions, compare and contrast the following theories on consumption behaviours: i. Milton Friedman: Permanent-Income Hypothesis Robert Hall: Random Walk Hypothesis Franco Modigliani: Life-Cycle Hypothesis ii. iii.
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