What is your marginal rate of consumption

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Discussion 1. What is your marginal rate of consumption (MPC)? If your income increased $1,000 per month until retirement, how much would you're spending on consumption goods increase?

Discussion 2. The aggregate supply-aggregate demand diagram assumes the short-run aggregate supply curve is upward sloping (where more is supplied when prices increase) because output prices increase faster than input prices, such as wages. Do you believe wages adjust at the same rate as output prices? How frequently are your wages adjusted?

Discussion 3. What number do you think is most likely to be the velocity of money?

Discussion 4. Should the Fed have helped bail out big investment banks that were failing during the Great Recession (e.g., Bear Sterns or AIG)?

Reference no: EM133185593

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