Economics Today: The Macro View (18th Edition)
Economics Today: The Macro View (18th Edition)
18th Edition
ISBN: 9780133884876
Author: Roger LeRoy Miller
Publisher: PEARSON
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Chapter 12, Problem 2FCT
To determine

Change in the value of multiplier due to slow growth of household spending on services.

Introduction:

The raised proportion of income that a consumer spends on consumption of goods or services rather than on saving is referred as marginal propensity to consume (MPC).

The raised proportion of income that a consumer sends on saving rather than on consumption of goods or services is referred as marginal propensity to save (MPS).

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