ECON102 Lecture Notes - Lecture 7: Google Images, Canadian Dollar, Real Interest Rate

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ECON102 Full Course Notes
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ECON102 Full Course Notes
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Lecture 7 continuing chapter 8 (aggregate demand: dissaving means that you are borrowing or taking money from your savings for your autonomous consumption, mpc (marginal propensity to consume) results from the change in one"s disposable income. Now, we will talk about two of these formulas: apc = c/yd and aps = s/yd: aps = average propensity to save and apc = average propensity to consume, always: apc + aps = 1, a numerical example: 90: taxes is in lump sum, which means that it is a fixed amount regardless of one"s income. Fill in the below table based on the above table: Notice: apc + aps = 1 and mpc + mps = 1. These functions are written based on the above table created. 0. 4 comes from mps and 0. 6 comes from mpc. The -12 comes from the savings cell and 12 comes from the consumption cell.

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