Read the article by Carroll "Requiem for the Representative Consumer? Aggregate Implications of

Read the article by Carroll "Requiem for the Representative Consumer? Aggregate Implications of

Microeconomic Consumption Behavior" and answer the following questions.

1. What is "heterogeneity"?

2. What is "homogeneity"?

3. What is "precautionary savings"?

4. How does MPC change as the wealth level of consumers change?

5. What is "representative consumer"?

6. What is a "typical consumer"?

7. What is the difference in wealth level for typical versus representative consumers?

8. What is the difference between "patient" and "impatient" consumers?

9. Compare the wealth level of patient and impatient consumers (the same, different - based on the article)

10. What is "idiosyncratic risk"?