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What is the marginal propensity to consume

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Answer the following questions about marginal propensity to consume and the multiplier. First provide the correct equation and then show your work to arrive at the answer:

-What is the marginal propensity to consume when consumption changes from 7 to 6 and disposable income changes from 5 to 3?

-If disposable personal income is 10 and consumption is 12, what is personal savings? What does this mean?

-What is the multiplier when the change in equilibrium level of real GDP in the aggregate expenditures model is 9, and change in autonomous aggregate expenditures is 3?

-What is the multiplier when the marginal propensity to save is 1/3?

-What would happen to the marginal propensity to save when a tax cut was enacted causing the multiplier to change to 5?

Reference no: EM132506574

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