Change: There were only format changes (bold, italics, etc.) in this version. See this version for details. (Word count: 643)

Change: There were only format changes (bold, italics, etc.) in this version. See this version for details. (Word count: 643)

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)

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)

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)

Change: There were only format changes (bold, italics, etc.) in this version. See this version for details. (Word count: 608)

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)

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 DIGreater 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)

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)

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)