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

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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
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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...
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