Chat with us, powered by LiveChat 

Economics Terms pt. 2

Here are a list of some common economic terms and meanings pt.2:

  • Marginal Propensity to Consume, or MPC: is the increase in consumer spending when disposable income rises by $1
  • Marginal Propensity to Save, or MPS: is the increase in household savings when disposable income rises by $1
  • Autonomous Change in Aggregate Spending: an initial change in the desired level of spending by firms, households, or government at a given level real GDP
  • The Multiplier: the ratio of the total change in real GDP caused by an autonomous change in aggregate spending to the size of that autonomous change
  • Consumption Function: an equation showing how an individual household’s consumer spending varies with the household’s current disposable income
  • Aggregate Consumption Function: the relationship for the economy as a whole between aggregate current disposable income and aggregate consumer spending

Nice Carl

Call today to see how much you qualify for at Fast Cash Title Loans, 21615 Cascades Pkwy, Sterling, Va 20166 – 703-444-3840 or 6526 Arlington Blvd, Falls Church, Va 22042 – 702-237-5626

When you call in to get a loan, let us know that you saw our blog so an exclusive offer!