Business, 01.07.2020 15:01, kaanan8984

Household behavior with respect to changes in income can be described by the marginal propensity to consume (MPC) and the marginal propensity to save (MPS). These variables can be used to predict the eventual changes in equilibrium output after the change in income has occurred. The the larger the resulting change in output for a given change in expenditure.

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Household behavior with respect to changes in income can be described by the marginal propensity to...