Which one of the following reasons makes it easier to forecast the impact of an income change on consumption for hand‑to‑mouth consumers than for consumption smoothers? It is easier because hand-to-mouth consumers save a large portion of their income. the marginal propensity to consume is 1 for consumption smoothers. hand-to-mouth consumers only spend their permanent income. hand-to-mouth consumers spend their entire income as they earn it.

Jorge is attending college next year. he just got information on the college costs and the financial aid package the college is offering. jorge knows his parents can contribute $4,500 each year. jorge’s college costs & financial aid package per year costs financial aid package tuition & fees grants & scholarship $26,000 $18,500 room & board work-study $12,500 $8,500 how much will jorge need to pay each year from his own savings and from loans? $3,000 $7,000 $7,500 $11,500