What does "Certeris Paribus" assume when
calculating how people spend money?
A. The person has held the same job with the same amount of
pay
B. The person has been promoted and makes more money than
before.
C. The person has lost their job and is unemployed at the
moment.
D. The person has taken a second job for additional income.
ceteris paribus assumes things like confidence and income remain the same, so that we may study simply the interaction between interest rates and the demand for loans and ignore how all the other variables might affect the outcome.
