6.Explain why changes in consur aption are unpredictable if consumers obey the permanent-income hypothesis and have rational expectations 7.One study found that the elderly who do not have children dissave at about the same rate as the elderly who do have children.What might this finding imply about the reason the elderly do not dissave as much as the life-cycle mod predicts? 8.In the neoclassical model of business fixed investment,under what conditions will firms find it profitable to add to their capital stock 9.List four reasons firms might hold inventories.6.Explain why changes in consumption are unpredictable if consumers obey the permanent-income hypothesis and have rational expectations. 7.One study found that the elderly who do not have children dissave at about the same rate as the elderly who do have children.What might this finding imply about the reason the elderly do not dissave as much as the life-cycle model predicts? 8.In the neoclassical model of business fixed investment, under what conditions will firms find it profitable to add to their capital stock 9. List four reasons firms might hold inventories