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III. UNIT III

III. UNIT III

III. UNIT III. B. The Consumption Function. 1. Autonomous consumption. identification and determining. factors. 2. Induced consumption. identification and determining. factors. 3. Calculation of MPC and MPS. C. Determinants of Planned Investment. D. Composition of Aggregate Demand.

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412 views • 23 slides
III. UNIT III

III. UNIT III

III. UNIT III. B. The Consumption Function. 1. Autonomous consumption. identification and determining. factors. 2. Induced consumption. identification and determining. factors. 3. Calculation of MPC and MPS. C. Determinants of Planned Investment. D. Composition of Aggregate Demand.

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380 views • 22 slides
Chapter 5

Chapter 5

Chapter 5. The Consumption Sector. Chapter Objectives. The average propensity to consume The average propensity to save The marginal propensity to consume The marginal propensity to save The consumption function The saving function The determinants of consumption

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260 views • 15 slides
Chapter Three Consumption and Saving

Chapter Three Consumption and Saving

Chapter Three Consumption and Saving. 1. Consumption and saving analysis Factors affect consumption current disposable income; foresight of income and price; interest rate for consumer ’ s credit; catch up with somebody;

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254 views • 12 slides
Problem (1)

Problem (1)

Problem (1). C = 20 + 0.8 Y Consumption Function I = 100 Investment Find the following: 1. Marginal Propensity to Consume (MPC): MPC = 0.8 2. Marginal Propensity to Save (MPS) : MPC + MPS =1 MPS = 1 – MPC = 1 – 0.8 = 0.2.

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408 views • 9 slides

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