The Martin family has a disposable income of $90,000 annually. Currently, the Martin family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.8 and that their autonomous consumption spending is equal to $10,000. What is the amount of the Martin family's annual consumer spending? 2$
The Martin family has a disposable income of $90,000 annually. Currently, the Martin family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.8 and that their autonomous consumption spending is equal to $10,000. What is the amount of the Martin family's annual consumer spending? 2$
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 6SQ
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