Keynes Pdf 126657 | Mankiw8esm Macro Chap16 170 183

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File: Keynes Pdf 126657 | Mankiw8esm Macro Chap16 170 183

CHAPTER 16 Understanding Consumer Behavior Questions for Review 1. First, Keynes conjectured that the marginal propensity to consume—the amount con- sumed out of an additional dollar of income—is ...

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...Chapter understanding consumer behavior questions for review first keynes conjectured that the marginal propensity to consume amount con sumed out of an additional dollar income is between zero and one this means if individual s increases by a both consumption saving increase second ratio called average falls as rises implies rich save higher proportion their than do poor third primary determinant consump tion in particular he believed interest rate does not have important effect on function satisfies these three conjectures c cy cis constant level autonomous y disposable evidence was consistent with came from studies house hold data short time series there were two observations household households consumed more saved implying larger fraction lower years when aggregate low high propen sity correlation sumption seemed so strong no variables other explaining piece against fail ure secular stagnation occur after world war ii based keynesian some economists expected increased over would a...

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Posted on: 12 Oct 2022 | 2 years ago
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