Macroeconomics

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

Income and Consumption

The Consumption Function

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1

concept

Consumption Function (Consumption Schedule)

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9m
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2

concept

Marginal Propensity to Consume and Save

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4m
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3

concept

1 = MPC + MPS

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2m
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4

concept

Equation of the Consumption Function

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5
Problem

Calculate the Marginal Propensity to Consume and the Marginal Propensity to Save using the following table: 

6
Problem

If the Keynesian consumption function is C = 10 + 0.8 Yd then, if disposable income is $1000, what is amount of total consumption?

7
Problem

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

8
Problem

An increase in the marginal propensity to consume will: