Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

9 Cards in this Set

  • Front
  • Back
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


1 / MPS