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3 answers

You need to learn the terminology before asking the question. I assume you're trying to cram and just get answers for your homework rather than doing the work and learning. "Consumer" is not a verb, therefore there is no marginal propensity to consumer. It's a noun; the consumer has a marginal propensity to consume. And, yours is a question so simple that I would be very surprised not to find it in short form in your textbook.

2007-01-06 17:13:56 · answer #1 · answered by mr.threethirtyfive 4 · 0 0

marginal propensity to consume
Definition

An economic term for the amount that consumption changes in response to an incremental change in disposable income. Equal to the change in consumption divided by the change in disposable income that produced the consumption

multiplier
Definition

A number which indicates the magnitude of a particular macroeconomic policy measure. In other words, the multiplier attempts to quantify the additional effects of a policy beyond those that are immediately measurable. For example, a decrease in taxation will have more of an effect than just the value of the reduced taxes. It will lead to greater disposable income which might cause an increase in consumption, which in turn might increase employment in industries which enjoy greater demand and so on. So the total effect of the implemented policy equals the effect of the policy measure, times the multiplier. This is true of most macroeconmic policy measures, because the actual effect of the measure cannot be quantified by the effect of the measure itself.

2007-01-07 01:27:06 · answer #2 · answered by The Answer Man 5 · 0 1

Multiplier = 1/MPS or 1/1-MPC

2007-01-07 15:09:53 · answer #3 · answered by Peace Love 2 · 0 0

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