{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Lesson 03.04 final - 0.2 6 $6,000 $5,200 $200 0.8 0.2 7...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
03.04 Marginal Propensities and the Multiplier Formulas Activity Year Disposable Income (DI) Consumption (C) Savings (S) MPC ∆C / ∆DI MPS ∆S / ∆DI 1 $1,000 $1,200 $0 1 0 2 $2,000 $2,000 $200 0.8 0.2 3 $3,000 $2,800 $200 0.8 0.2 4 $4,000 $3,600 $200 0.8 0.2 5 $5,000 $4,400 $200 0.8
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 0.2 6 $6,000 $5,200 $200 0.8 0.2 7 $7,000 $6,000 $200 0.8 0.2 MPC Spending Multiplier 1/MPS or 1/1-MPC Tax Multiplier-MPC/MPS 0.9 10-9 0.85 6.66-5.66 0.8 5-4 0.75 4-3 0.7 3.33-2.33 0.6 2.5-1.5 0.5 2-1...
View Full Document

Report

{[ snackBarMessage ]}