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Business, 23.10.2021 20:40 rerunkle96

For each of the following scenarios, predict how consumption changes for both consumption smoothers and hand-to-mouth consumers. How does total consumption change? Household incomes rise 6% this year, but income growth is expected to return to its normal growth rate of 2% next year. A country with an economy based heavily on agricultural production experiences a natural disaster so severe that it will take decades for farmers to recover. People expect the economy to experience a recession over the next six months

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For each of the following scenarios, predict how consumption changes for both consumption smoothers...
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