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  1. ...total consumption a=autonomous consumption cY=induced consumption c= marginal propensity to consume : the % change of Y to C

  2. ...6.25 billion The reduction in the increase in income due to reduced marginal propensity to consume is outweighed by the increase in marginal propensity to save. So the increase in savings ...

  3. ... that occur as disposable income rises. Increases in consumption follow the famous marginal propensity to consume . An increase in disposable income leads to an increase in consumption, ...

  4. ... to an increase in consumption spending, the precise amount depending on the marginal propensity to consume . The initial increase in autonomous consumption would be subject to an expenditure multiplier...

  5. ... EFFECT on national income. The contraction in national income can be calculated...fall in investment / ( 1-MPC). MPC: marginal propensity to consume , which is less than 1.

  6. ...policy by increasing government expenditure. AD curve will be shifted to the right and cutting AS curve at 750. (D) Multiplier = 1...

  7. Y=C =C*+cYd =C*+0.8(Y-T-0.2Y) =C*+0.8(0.8Y-T) AE=0.64Y Y升1000 AE/Y升640 呢個係真正做法

  8. ...economic lesson , you will understand what I am talking about c= marginal propensity to consume t = proportional tax rate In this case , therefore , the economy have a proportional tax , the income multiplier is 1 / (1-c+ct) When...