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9 Cards in this Set
- Front
- Back
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Income relationships graph reference line
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45 degree line
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Reflects the direct consumption-disposable income relationship.
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Consumption schedule (consumption function)
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Saving function
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S = DI - C
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Average propensity to consume (APC)
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Consumption / Income
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Average propensity to save (APS)
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Saving / Income
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Marginal propensity to consume (MPC)
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change in consumption / change in income
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Marginal propensity to save (MPS)
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change in savings / change in income
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Events suddently boos the value of existing wealth
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Wealth effect
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Multiplier (multiplier ratio)
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Change in real GDP / initial change in spending
or 1 / MPS |
