Problem
1. What is the permanent income hypothesis? How does its consumption function relate to intertemporal choice?
2. Describe the life-cycle hypothesis and how it relates to intertemporal choice.
3. What modifications to intertemporal choice theory have been made by the random walk hypothesis and behavioral economics?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.