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  • Scan 04 Nov 2023

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    aqadir989962
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    The document discusses the relationship between aggregate private savings (APS), aggregate private consumption (APC), national income (Y), and the marginal propensity to consume (MPC). It defines APS as being equal to Y minus APC. It also defines that the change in APS is equal to the change in Y minus the change in APC. The relationship between APS and APC is that APS equals Y times 1 minus the MPC, while APC equals Y times the MPC.

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    Jjjjj

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    Scan 04 Nov 2023 (8)

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    The document discusses the relationship between aggregate private savings (APS), aggregate private consumption (APC), national income (Y), and the marginal propensity to consume (MPC). It defines APS as being equal to Y minus APC. It also defines that the change in APS is equal to the change in Y minus the change in APC. The relationship between APS and APC is that APS equals Y times 1 minus the MPC, while APC equals Y times the MPC.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
    6 views1 page

    Scan 04 Nov 2023

    Uploaded by

    aqadir989962
    The document discusses the relationship between aggregate private savings (APS), aggregate private consumption (APC), national income (Y), and the marginal propensity to consume (MPC). It defines APS as being equal to Y minus APC. It also defines that the change in APS is equal to the change in Y minus the change in APC. The relationship between APS and APC is that APS equals Y times 1 minus the MPC, while APC equals Y times the MPC.

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    of 1

    Aggrcyakebmand &lelahed CONCErT

    O APSCan nen be) on tnare than (


    APS Can be Zoo 0)
    less thah: 0. 4) Ars ices wtH in ereere in JNHE:
    MPS2 chenge in Sahg &
    &tncomg
    AY
    Relatonshþ betwen APC and APS
    The &on of trc APS is cgqual to On
    =C+S (Bivikby both Aides by Y)

    The Am of MPe k MPS = 1


    He puoy ay = 4c+as ( bividn both aihes by 44)
    A4
    MPS)

    ApS =S=|-APC =|-MPS


    MPS AS~MPC
    AY
    Coyaion of Consamtion funchion
    Hue Ca Consumption, tutona».qus Consombtfon, ba MPC, Y Incom
    Equation o Sawhg func tion.

    S=y-f+b(Y)
    Then S -tc-b) Y
    JNVEST MENT NC TION
    MtanA eþendituve tn the cnation oftes Capi Asscts
    JNCE INVESTHENT AUTONOMOUS JNVESTHE

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