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8 Cards in this Set
- Front
- Back
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Average propensity to consume (APC) |
Fraction/percentage of total income that is consumed |
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Average propensity to save (APS) |
Fraction of total income that is saved |
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Marginal propensity to consume (MPC) |
Proportion/fraction of any change in income consumed |
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Marginal propensity to save (MPS) |
Fraction of any change in income saved |
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Wealth effect |
Shifts the consumption schedule upward and the saving schedule downward |
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Expected rate of return |
Increase in profit a firm anticipates it will obtain by purchasing capital; expressed as a percentage of the total cost of the investment activity |
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Investment demand curve |
Shows the amount of investment forthcoming at each real interest rate |
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Multiplier |
Determines how much larger that change will be; ratio of a change in GDP to the initial change in spending |
