Friedman believed that O Households' spending is rooted in status O Households should base their living standard on permanent income O Rich people get richer because MPC decreases as income increases...

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Extracted text: Friedman believed that O Households' spending is rooted in status O Households should base their living standard on permanent income O Rich people get richer because MPC decreases as income increases O MPC is higher for young adults than middle aged individuals Question 13 If households have the tendency to save $25 of every additional $100 earned, O the MPC in this economy is .25 O the MPS in this economy is equal to the MPC O the MPC in this economy is .75 O the MPS in this economy is .75