mjb08a_M91_RETURNED - Marginal Propensity to Consume and...

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Marginal Propensity to Consume and the Multiplier Investment $1,000,000.00 MPC 0.1 Multiplier 1.11 Round # Spending in this round Cumulative Spending 1 $1,000,000.00 $1,000,000.00 2 $100,000.00 $1,100,000.00 3 $10,000.00 $1,110,000.00 4 $1,000.00 $1,111,000.00 5 $100.00 $1,111,100.00 6 $10.00 $1,111,110.00 7 $1.00 $1,111,111.00 8 $0.10 $1,111,111.10 9 $0.01 $1,111,111.11 10 $0.00 $1,111,111.11 11 $0.00 $1,111,111.11 12 $0.00 $1,111,111.11 13 $0.00 $1,111,111.11 14 $0.00 $1,111,111.11 15 $0.00 $1,111,111.11 16 $0.00 $1,111,111.11 17 $0.00 $1,111,111.11 18 $0.00 $1,111,111.11 19 $0.00 $1,111,111.11 20 $0.00 $1,111,111.11
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Marginal Propensity to Consume Year Consumption Disposable Income Marginal Propensity to Consume C DI MPC = (Change in C / Change in DI) 1997 $2,700 $3,200 1998 $3,000 $3,600 1999 $3,300 $4,000 2000 $3,600 $4,400 2001 $3,900 $4,800 2002 $4,200 $5,200 Change in C (3000 - 2700) MPC = ------------------ = ------------------- = 0.75 Change in DI (3600 - 3200)
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This note was uploaded on 05/01/2010 for the course BUS 5529 taught by Professor Wood during the Spring '10 term at Abilene Christian University.

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mjb08a_M91_RETURNED - Marginal Propensity to Consume and...

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