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Business, 24.02.2020 18:27 dakmil79

Complete the statements and then calculate the change in consumption. The consumption function shows the relationship between consumption spending and disposable income The slope of the consumption function is the marginal propensity to consume. Changes in consumption can be predicted by multiplying the change in marginal propensity to save. by the disposable income If the MPC = 0.80 and disposable income increases by $ 1000 , then consumption will increase by what amount? Assume that there is no multiplier effect.

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Complete the statements and then calculate the change in consumption. The consumption function shows...
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