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Unformatted text preview: 2. Consumption and Investment (Chapter 6 and Reading 3)- Average vs. Marginal Propensity to Consume - Average vs. Marginal Propensity to Save - Consumption Function, Marginal Propensity to Consume and Autonomous Consumption C = C O + C 1 *y d C O = autonomous spending (the amount we would spend if our income was O) C 1 = Marginal Propensity to Consume (MPC) y d = disposable income....
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This note was uploaded on 03/10/2011 for the course ECON 103 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.
- Spring '08
- Consumer Price Index (CPI)