CALIFORNIA STATE UNIVERSITY, SACRAMENTO
Department of Economics
Take Home Examination 100A
Instructions: Two pages typed single spaced for each question.
Due Date: Noon, Monday, November 29, 1999
Exam can be e-mailed to arg@csus.edu
Or
Faxed to: 278-5768 to make it easier for those who want to attach diagrams to their essay answer.
1. Write an essay explaining why consumption is not a function of current (measured) income.
2. Write an essay on the theory of investment with emphasis on the theory as a stock-flow adjustment model, i.e., investment adjusts to the differences between the actual and desired capital stock.