Fiscal Policy University of Notre Dame圣母大学财政政策.pptVIP

However, we need to be careful here…. We need the marginal propensity to consume, using the savings rate, we really have the average propensity to consume It could be Here, we have (at Y = $40,000) Average propensity to consume However, we need to be careful here…. We need the marginal propensity to consume, using the savings rate, we really have the average propensity to consume Or, it could be Here, we have (at Y = $40,000) Average propensity to consume “If I Had a Hammer…” Lets add up all the increases in income due to the initial government purchase of a $100 hammer Hardware Store: $100