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AP Macro Equations
Unit Three
| Term | Definition |
|---|---|
| Expenditure Multiplier | 1/(1-MPC) = _______ |
| Expenditure Multiplier | 1/MPS = ___________ |
| 1 | MPC + MPS = __________ |
| Marginal Propensity to Consume (MPC) | additional consumption / additional disposable income = __________ |
| Parginal Propensity to Save (MPS) | additional savings / additional disposable income = _____________ |
| Average Propensity to Consume (APC) | consumption / disposable income |
| Average Propensity to Save (APS) | savings / disposable income |