In a closed economy with no government, a £1 billion increase in investment leads to a £5 billion increase in consumption. What is the value of the marginal propensity to consume?
In a closed economy with no government, a £1 billion increase in investment leads to a £5 billion increase in consumption. What is the value of the marginal propensity to consume?
Chapter23: The Aggregate Expenditure Model
Section: Chapter Questions
Problem 6P
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In a closed economy with no government, a £1 billion increase in investment leads to a £5 billion increase in consumption. What is the value of the marginal propensity to consume?
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