Version User Scope of changes
Mar 3 2008, 7:59 AM EST mina.song 1 word added, 3 words deleted
Mar 2 2008, 5:32 AM EST kl_0511 9 words added, 9 words deleted

Changes

Key:  Additions   Deletions
The Income Consumption / Income Saving Relationship
  • The consumption schedule. Theconsumption, saving schedule.
  • Average and marginal propensities to save/consume.
    • APC=consumption/income
    • APS=savings/income
    • MPC=change in consumption/change in income
    • MPS= change in savings/change in income
  • Nonincome determinants of consumption and saving.
    • wealth
    • expectations
    • real interest rates
    • household debt

The Interest Rate - Investment Relationship
  • Expected rate of return.
  • The real interest rate.
  • Investment demand curve.
  • Shifts of the investment demand curve.
    • Acquisition, maintenance and operating costs
    • business taxes
    • technological change
    • stock of capital goods on hand
    • expectations

The Multiplier Effect
  • Explanation
  • Rationale
  • The multiplier and marginal propensities.