Home / Questions / What are the simplifying assumptions that are made in the Keynesian Model? 118) What i
What are the simplifying assumptions that are made in the Keynesian Model?
118) What is the primary determinant of saving and consumption according to Keynes? Explain.
119) Suppose the marginal propensity to consume is 0.75. What does this mean? What do we know about the marginal propensity to save? What do we know about the average propensity to consume?
120) When disposal income is $50 million, consumption expenditure is $45 million. When disposal income is $60 million, consumption expenditure is $50 million. What is the MPC?
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