What is the Marginal Propensity to Consume (MPC) in this model?

September 16, 2019/in Graduate Papers /by admin

Consider the simplest macro model with demand-determined output. The equations are:

C = 150 + 0.8Yd, Yd = Y-T,

I = 400, G = 700,

T = .2Y, X = 130, and

IM = 0.14Y.

What is the Marginal Propensity to Consume (MPC) in this model?

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What is the Marginal Propensity to Consume (MPC) in this model?

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