Tuesday, February 25, 2014

Graph 8 - Consumption and Savings Link

C2 - consumption increase at every level of DI.
The poor and rich are spending more.
DI = Consumption + Saving
If C increase, then S decrease.
MPC + MPS = 1

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  1. LizzieMarch 5, 2014 at 6:08 AM

    Nice blog! What happened to the rest of the MPC & MPS calculations? Tax & govt. Multiplier

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