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Multiplies

multipliers quiz

QuestionAnswer
disposable income how much you have after taxes
average propensity to consume how much you spend on average, consumption/disposable income
average propensity to save how much you save on average, savings/disposable income
APC + APS = 1
Marginal propensity to consume how much you spend with each additional amount you earn, delta consumption/delta disposable income
marginal propensity to save how much of each additional amount is saved, delta savings/delta disposable income
spending multiplier 1/MPS
tax multiplier amount removed from system, -MPC/MPS
the tax multiplier is always 1 less than the spending multiplier
Created by: Ami0112
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