princemarine2 princemarine2

27-10-2016
Advanced Placement (AP)

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The following equation represents a relationship between household consumption expenditure, c and income, y: C= 120+0.65y explain what the figure 120 stands for in the consumption income relationship, and the type of
relationship

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27-10-2016

120 is the MPC (marginal propensity consumption), and it has an independent relationship.

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