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Marginal Propensity to consume or known as (MPC) relates to a change in net or total consumption expenditure to a change in the total disposable income.Symbolically it is written as MPC = ?C/?Ywhere, ?C is the Change in total consumption expenditure and?Y is the Change in total disposable income.Let Suppose, the total disposable income in an economy increases from $ 10,000 crore to $ 20,000 crore & the consumption expenditure rises from $ 8,000 crore to $ 15,000 crore, then the MPC will be calculated as follows:
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Central bank and monetary policy By monetary policy we mean the policy directed at controlling the money supply and the interest rates. In most countries, the central bank is r
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From estimating the aforementioned unrestricted VAR, a table of coefficient and statistics will be produced. From this table, certain statistical information can be analysed, such
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