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
You have an opportunity to invest in a new plant. The fixed costs are $100,000 per year. The marginal cost of production is $2 for a quantity up to 10,000 units per year. The margi

Use short notes and illustrations to answer the following questions: i) Distinguish between an indifference curve and an isoquant ii) Distinguish between substitution and inc

what are the major socio economic problems of India which hamper the growth and development

Can you help me with my assingment exael

How has the definition of diversity changed over time? Can a diverse workforce help a company compete more effectively? How?

advantages of government grants

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

QUESTION 1 (a) Illustrate the main causes of inflation in Mauritius. (b) Critically analyse the costs of inflation. Which of these items is likely to have encouraged the Mau

What are the predictions of dependency theory? The predictions of dependency theory: • DCs exploit LDCs (Less Developed Countries) by extracting their surplus value. Surplu

Find 1-3 articles that discuss the competition between Target and Walmart.