What is value of marginal propensity to consume

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Q. You can use back of this page as scrap. I will not look at back when grading this quiz, so you should present your complete answers by questions. Consider following numerical example of simple Keynesian model with no government spending or taxes (all figures in $billions): C = 100 + 0.9 Y I = 50 a). What is value of marginal propensity to consume (MPC) in this model? Marginal propensity to save (MPS)?

Reference no: EM1369646

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