Eco 200 – Principles of Macroeconomics. Chapter 10:Aggregate Expenditures. Consumption and Saving. Y d = C+S S = Y d – C C = a + bY d a = intercept b = slope (= D C/ D Y d ). Saving and Dissaving. C > Y d : S < 0 C < Y d : S > 0 C = Y d : S = 0. MPC and MPS.
Chapter 10:Aggregate Expenditures
S = -a + (1-b) Yd
MPI = ?