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
Define the difference between configuration management and change control and the relationship among them. Change control is the management of the project scope. Configuration

How is the informal sector, urban modern sectors connected? Several urban regions into developing countries are dualistic as: current formal activity exists side by side along

What is the Washington Consensus? The Washington Consensus is a set of polices arguments advocated through free market economists to motivate growth and it is at the heart of

What is Monopoly and how does it affect the economic postively and negatively?

What is the difference between absolute and comparative advantage? Difference between absolute and comparative advantage: • Absolute advantage arises while a country or reg

Question 1: What are the main predictions of the Capital Asset Pricing Model (CAPM)? Discuss the role and significance of the assumptions needed to obtain the predictions.

In the model with utilities W i = c i + α ln(x i ) where individuals are endowed with ability levels w p m R and form fractions π p , π m , π r with π m > π p , π r

What is the main danger in placing countries together in the same grouping? It is useful to classify countries by groupings for identification of common problems and policy pu

how the concept of elasticity used for policy formulation

How can the savings gap be plugged? Low savings are a barrier type to growth. All developing countries have low incomes therefore low savings. A savings gap can be met through