Explanation The value of MPC can be determined by dividing changes in consumption by changes in income. Given that the consumption increases by $12 billion and real disposable income increases by $15 billion, the value of MPC is equal to

6th Edition

ISBN: 9781337408745

Author: William A. McEachern

Publisher: Cengage Learning

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Question

Chapter 9, Problem 2P

To determine

Value of MPC, Relationship between MPC and MPS, If MPC increases, what happens to MPS,MPC related to consumption function and MPS related to saving function.

Expert Solution & Answer

Chapter 9 Solutions

Econ Macro (book Only)

Ch. 9 - Prob. 1P Ch. 9 - Prob. 2P Ch. 9 - Prob. 3P Ch. 9 - Prob. 4P Ch. 9 - Prob. 5P Ch. 9 - Prob. 6P Ch. 9 - Prob. 7P Ch. 9 - Prob. 8P Ch. 9 - Prob. 9P Ch. 9 - Prob. 10P

Ch. 9 - Prob. 11P Ch. 9 - Prob. 12P Ch. 9 - Prob. 13P

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