|
Mar 2 2008, 10:41 AM EST
|
|
|
edit |
|
|
Change: There were only format changes (bold, italics, etc.) in this version. See this version for details.
(Word count: 643)
|
|
Mar 2 2008, 10:41 AM EST
|
|
|
edit |
|
|
Change: There were only format changes (bold, italics, etc.) in this version. See this version for details.
(Word count: 643)
|
|
Mar 2 2008, 10:40 AM EST
|
|
|
edit |
|
|
Change: There were only format changes (bold, italics, etc.) in this version. See this version for details.
(Word count: 643)
|
|
Mar 2 2008, 10:32 AM EST
|
|
|
edit |
5 words added
4 words deleted
|
|
Change: Note*Note that if a consumer's income changed by a certain percentage, their propensity to spend does NOT always change in accordance with it. MPC and MPS as Slopes The MPC and MPS are the numerical values of the slopes of the consumption and savings schedule, respectively. Nonincome determinants
View changes from previous version.
(Word count: 643)
|
|
Mar 2 2008, 7:35 AM EST
|
|
|
edit |
10 words added
10 words deleted
|
|
Change: Average Propensity to Consume (APC): total percentage of DI consumed APS:Average Propensity to Save (APS): total percentage of DI saved APC (average propensity to consume) = Consumption/Income the fraction of total income that is consumed APS (average propensity to save) = Saving/income the fraction of
View changes from previous version.
(Word count: 643)
|
|
Mar 2 2008, 6:41 AM EST
|
|
|
edit |
|
|
Change: There were only format changes (bold, italics, etc.) in this version. See this version for details.
(Word count: 643)
|
|
Mar 2 2008, 6:40 AM EST
|
|
|
edit |
26 words added
|
|
Change: relationship to/ effects on economic growth, inflation, recession, and business cycle The Consumption Schedule:- Reflects the direct consumption (C) -disposable income (DI) relationship -Households increase their C as DI rises.-Households spend a larger proportion, if their DI is small.-Break-even income is when C=DI
View changes from previous version.
(Word count: 643)
|
|
Mar 2 2008, 5:55 AM EST
|
|
|
edit |
5 words added
5 words deleted
|
|
Change: incomeincome. the proportion of changes in income consumedconsumed. MPS (marginal propensity to save) = change in saving/change in incomeincome. the proportion of changes in income savedsaved. MPC + MPS =1 The sum of the MPC and the MPS
View changes from previous version.
(Word count: 616)
|
|
Mar 2 2008, 5:51 AM EST
|
|
|
edit |
8 words added
8 words deleted
|
|
Change: presentpresent. Shifts Consumption schedule upward and Saving schedule downward Opposite occurs, when there are expectations of a recession and lower income in the future Real Interest Rates When real interest rates fall, households borrow more, consume more, and save lessless. When real interest rates climb
View changes from previous version.
(Word count: 616)
|
|
Mar 2 2008, 5:06 AM EST
|
|
|
edit |
8 words added
|
|
Change: -Dissaving usually occur with households of lower income.The Saving Schedule:Savings = Disposable Income - ConsumptionSavings are essentially the portion of your income you don't consume.Dissavings= consuming more than the available income either by liquidating accumulated wealth or borrowing money. If households consume
View changes from previous version.
(Word count: 616)
|
|
Mar 2 2008, 3:37 AM EST
|
|
|
edit |
|
|
Change: There were only format changes (bold, italics, etc.) in this version. See this version for details.
(Word count: 608)
|
|
Mar 2 2008, 3:36 AM EST
|
|
|
edit |
23 words added
|
|
Change: Note that if a consumer's income changed by a certain percentage, their propensity to spend does NOT always change in accordance with it. MPC and MPS as Slopes The MPC and MPS are the numerical values of the slopes of the consumption and savings schedule, respectively. Nonincome determinants
View changes from previous version.
(Word count: 608)
|
|
Mar 1 2008, 3:05 PM EST
|
|
|
edit |
22 words added
2 words deleted
|
|
Change: The sum of the MPC and the MPS for any change in DI must always be 1 becuase every leftover dollar not spent is savedcounted "saved" MPC and MPS as Slopes The MPC and MPS are the numerical values
View changes from previous version.
(Word count: 584)
|
|
Mar 1 2008, 10:45 AM EST
|
|
|
edit |
|
|
Change: There were only format changes (bold, italics, etc.) in this version. See this version for details.
(Word count: 564)
|
|
Mar 1 2008, 10:44 AM EST
|
|
|
edit |
11 words added
1 word deleted
|
|
Change: on credit. Household Debt When consumers as a group increase household debt, they can increase current consumption at each level of DI Household debt is a constant proportion in DI Greater household debt means greater borrowing Increased borrowing shifts the consumption schedule upward Reduced borrowing shifts consumption schedule downward
View changes from previous version.
(Word count: 564)
|
|
Mar 1 2008, 8:20 AM EST
|
|
|
edit |
|
|
Change: There were only format changes (bold, italics, etc.) in this version. See this version for details.
(Word count: 554)
|
|
Mar 1 2008, 8:20 AM EST
|
|
|
edit |
1 word added
1 word deleted
|
|
Change: TehyThey mainly shift products bought on credit. Household Debt When consumers as a group increase household debt, they can increase current consumption at each level of DI Household debt is a constant proportion in DI Increased borrowing shifts the consumption schedule upward Reduced borrowing shifts consumption schedule downward
View changes from previous version.
(Word count: 554)
|
|
Mar 1 2008, 8:19 AM EST
|
|
|
edit |
|
|
Change: There were only format changes (bold, italics, etc.) in this version. See this version for details.
(Word count: 554)
|
|
Mar 1 2008, 8:19 AM EST
|
|
|
edit |
42 words added
|
|
Change: -When developing macroeconomic models, economists change their focus from consumption and disposable income to the relationship between consumption and saving and real domestic output (real GDP).The 45 Degree Line:- A reference line that bisects the the 90 degree angle formed by the y-axis and x-axis of the graph.
View changes from previous version.
(Word count: 554)
|
|
Mar 1 2008, 5:12 AM EST
|
|
|
edit |
46 words added
1 word deleted
|
|
Change: debt. At this point, the consumption schedule intersects the 45 degree line (the savings schedule intercepts the x-axis). The 45 Degree Line:- A reference line that bisects the the 90 degree angle formed by the y-axis and x-axis of the graph.- At each point on the 45 degree
View changes from previous version.
(Word count: 512)
|