Created by quizlette4571068 Terms in this set (50) Refer to Exhibit 10-3. When disposable income equals $2,300, saving equals $20. How does the classical position on saving differ from Keynes's position? Classical position: saving is directly related to the interest rate.
ECON 2301 Chapter 10 30 terms Amanda_Vigil1 Econ 8,9,10,11 20 terms enveribisevic MACRO chapter 10 25 terms rachael_hagan
Refer to Exhibit 10-4. Let Yd1 denote the present level of disposable income. An increase in disposable income is most likely to, ceteris paribus, cause a movement to point.
Let Yd1 denote the present level of disposable income. An increase in disposable income is most likely to, ceteris paribus, cause a movement to point B When the MPC = 0.6, the multiplier is 2.50 The answer is: 1/(1 - MPC). What is the question? What is the multiplier?
The part of consumption that is dependent on disposable income is called autonomous consumption.
When total expenditure (TE) exceeds total production (TP), inventory levels rise unexpectedly, which sends a signal to firms that they have overproduced, so they cut back on production.
in excess of the market-clearing wage to provide an incentive for productivity and efficiency.
Classical position: saving is directly related to the interest rate. Keynes's position: at times, saving may be inversely related to the interest rate.
The part of consumption that is dependent on disposable income is called autonomous consumption.
When total expenditure (TE) exceeds total production (TP), inventory levels rise unexpectedly, which sends a signal to firms that they have overproduced, so they cut back on production.
in excess of the market-clearing wage to provide an incentive for productivity and efficiency.
Classical position: saving is directly related to the interest rate. Keynes's position: at times, saving may be inversely related to the interest rate.