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Unformatted text preview: G=government purchases of goods and services NX=X-M=net exports (X=exports, M=imports) Ms=money stock=money supply Ms/P =real money supply r (and sometimes i) = interest rate (nominal) mpc = marginal propensity to consume =change in C/ change in Y mps=marginal propensity to save = change in S/ change in Y=(1-mpc)...
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- Spring '08