Assumptions of permanent income hypothesis
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The authors examine the consequences of the 16-day federal government shutdown in October 2013, when Senate Democrats and House Republicans could not pass a spending bill in large part due to disagreement over defunding the Affordable Care Act.
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1.The assumption of a constant average propensity to consume.
2.The assumption of a marginal propensity to consume from transitory income equal to zero
here is your answer
1.The assumption of a constant average propensity to consume.
2.The assumption of a marginal propensity to consume from transitory income equal to zero
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