In the economy of Spendsalot, the marginal propensity to save, MPS, is 0.8. What is the marginal propensity to consume, MPC, for Spendsalot? Which value does MPC determine? a.the slope of tax revenues as a function of GDP b.the slope of pre‑tax consumption as a function of GDP c.the slope of pre‑tax investment as a function of GDP d.the slope of government consumption as a function of GDP.
In the economy of Spendsalot, the marginal propensity to save, MPS, is 0.8. What is the marginal propensity to consume, MPC, for Spendsalot? Which value does MPC determine? a.the slope of tax revenues as a function of GDP b.the slope of pre‑tax consumption as a function of GDP c.the slope of pre‑tax investment as a function of GDP d.the slope of government consumption as a function of GDP.
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 8SQ
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In the economy of Spendsalot, the marginal propensity to save, MPS, is 0.8.
What is the marginal propensity to consume, MPC, for Spendsalot?
Which value does MPC determine?
a.the slope of tax revenues as a function of
b.the slope of pre‑tax consumption as a function of GDP
c.the slope of pre‑tax investment as a function of GDP
d.the slope of government consumption as a function of GDP.
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