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9 Cards in this Set

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Income relationships graph reference line
45 degree line
Reflects the direct consumption-disposable income relationship.
Consumption schedule (consumption function)
Saving function
S = DI - C
Average propensity to consume (APC)
Consumption / Income
Average propensity to save (APS)
Saving / Income
Marginal propensity to consume (MPC)
change in consumption / change in income
Marginal propensity to save (MPS)
change in savings / change in income
Events suddently boos the value of existing wealth
Wealth effect
Multiplier (multiplier ratio)
Change in real GDP / initial change in spending

or

1 / MPS