Marginal propensity to consume , Business Economics

Assume  the marginal propensity to consume (MPC) is 0.9. Starting from   equilibrium, investment demand enhances by 50. How much does equilibrium income enhance?

Show the calculation and describe the mechanism.

 

Posted Date: 3/26/2013 2:04:17 AM | Location : United States







Related Discussions:- Marginal propensity to consume , Assignment Help, Ask Question on Marginal propensity to consume , Get Answer, Expert's Help, Marginal propensity to consume Discussions

Write discussion on Marginal propensity to consume
Your posts are moderated
Related Questions
Hatfield owned a large farm on which he grew grain. His combine was inadequate in relation to the acreage of grain that he harvested annually. As a result, on several occasions his

What are the assumptions of unbalanced growth? Development cannot be initiated through one industry. Government recognize strategically significant areas to planned economy or

Think of circumstances at home, at work, at university or into a club to which you belong. This is a situation which involves you. You want to modify the present circumstances and

difference b/w statistics in singular and plural sense

Define the aggregate price level in the macroeconomics. Aggregate Price Level: A nominal measure is a measure which has not been adjusted for modifications into prices

Question 1 Explain the Orthodox and Liberal perspective of political theory Question 2 Critically analyse the institutional approach in comparative political analysis

Explain the discounting principle. Using the discounting principle calculate the present value of an annuity of five years at Rs. 500 payments made at the end of each of the next f

Analyse the effectiveness of market approaches into promoting development. Assessing the effectiveness of some system, planned, market or mixed depends onto the choice of displ

Make a general comparison analysis of all the business units

What is an alternative process strategy to the assembly line that Wheeled Coach currently uses?