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8 Cards in this Set
- Front
- Back
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Consumption and Saving plans
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consumption function
saving function |
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Marginal propensity to consume
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the fraction of a change in disposable income that is consumed
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Marginal propensity to save
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the fraction of a change in disposable income that is saved
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Disposable income
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Yd=C+S
Yd=Y-NT |
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Other influences on consumption expenditure and saving
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expected future disposable income
the real interest rate Wealth |
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Consumption as a function of real GDP
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Import function
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Marginal propensity to import
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the fraction of an increase in real GDP that is spent on imports
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