Econ 2hh3 test 2 - Study guides, Class notes & Summaries

Econ 2hh3-test-2 Exam Questions with 100% Correct Answers If consumers use their house as collateral for lending and the value of housing in general falls, then - lending and aggregate consumption decrease. We assume that the representative consumer's preferences exhibit the properties that - current and future consumption are both normal goods and that the consumer likes diversity in his or her consumption bundle. An increase in total factor productivity shifts the production function ...