Macroeconomics

Learn the toughest concepts covered in your Macroeconomics class with step-by-step video tutorials and practice problems.

Income and Consumption

Average Propensity to Consume and Save

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Average Propensity to Consume and Save

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Problem

If the Keynesian consumption function is C = 10 + 0.8 Yd then, when disposable income is $1000, what is the average propensity to consume?

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Problem

If the Keynesian consumption function is C = 10 + 0.8 Yd then, when disposable income is $1000, what is the marginal propensity to save?