Rational Decision-Making within the Bounds of Reason
Edited by Morris Altman
Chapter 22: To consume or to save: are we maximizing or what?
22 To consume or to save: are we maximizing or what? Tobias F. Rötheli* 1 INTRODUCTION One of the most important relationships in macroeconomics is the so-called consumption function. It relates aggregate consumption to other macroeconomic variabl...
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