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Difference between autonomous and induced consumption

Assignment Help Macroeconomics
Reference no: EM132476365

Aggregate Expenditure Model

Question 1:

A.) What is the difference between autonomous and induced consumption?

B.) What part of the consumption function would change if the country is going through a stock market boom? How would the graph of the consumption function change due to the stock market boom?

Reference no: EM132476365

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