What concept does the following formula express?
a. autonomous change in consumption spending
b. marginal propensity to consume
c. marginal propensity to save
d. equilibrium in the aggregate expenditure model
c. marginal propensity to save
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The difference between an orthodox stabilization plan and a heterodox stabilization plan is that the orthodox plan
A) targets the problem of inflation, while the heterodox plan targets unemployment. B) reduces trade flows less than the heterodox plan. C) does not include higher taxes and the heterodox plan does. D) does not include wage and price controls and the heterodox plan does.
On average, if demand is unknown and costs of underpricing are _______ than the costs of overpricing, then err on the side of_________
a. Smaller; overpricing b. Smaller; underpricing c. Larger; underpricing d. None of the above