3. (3.5 points) Assume that when' aggregate income (ie., aggregate output, or Y) increases by $120 million in the country of Intrometida aggregate consumption (C) there increases by $24 milion. a. Using the pieces of information just given, find the marginal propensity to consume (MPC) for the economy of Intrometidar What is the marginal propensity to save (MPS) Show your work. Express your answers as either fractions or the appropriate decimals.
3. (3.5 points) Assume that when' aggregate income (ie., aggregate output, or Y) increases by $120 million in the country of Intrometida aggregate consumption (C) there increases by $24 milion. a. Using the pieces of information just given, find the marginal propensity to consume (MPC) for the economy of Intrometidar What is the marginal propensity to save (MPS) Show your work. Express your answers as either fractions or the appropriate decimals.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter25: The Keynesian Perspective
Section: Chapter Questions
Problem 20CTQ: Suppose the economy is operating at potential GDP when It experiences an increase in export demand....
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