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Marginal Propensity to save (MPS) is the ratio of change in total saving to change in total disposable income. Symbolically, MPS = ?S/?Y For example, total
State the term National income statistics National income statistics underestimate the true level of economic activity, and as people's living standards, because the non-moneti
Suppose the banking system has reserve of $750000, demand deposits of $2500000 and a reserve requirement of 20%. a. if the fed now purchases $125,000 worth of govt bonds from the
The rest of the world in the cross model Imports Im(Y) depends positively on Y in the cross model In the classical model, imports doesn't depen
Why might a perfectly competitive market firm be willing to run at a loss in the short run? The assumptions of a PCM firm should be outlined in order to end that the PCM firm i
What are the effects of neutral inflation
term paper on determinat and multiplier of money supply
what are the advantages and disadvantages of unemployment
What is the present worth of a cash flow that gives you $6 in every time period from 1 to 20 when the interest rate is zero?
ACCOUNTING SYSTEM-EXAMPLE IV Now consider the economy as in example III. In the next year same outputs were produced and the same incomes were paid out. However, the household
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