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(MPC vs. MPS (MPS+MPC=1, ^C/^DI, ^S/^DI, Constant), APC vs. APS (DI *Plus…
DI=C+S
C=DI
Break Even
C=DI
Dissaving
C>DI
Cases
De-wealth
Borrowing
Saving
C<DI
DI
Plus
S
Plus
C
Plus
Assumptions
Inflation :forbidden:
Private, closed
Depreciation :forbidden:
Questions
Unrealistic
#
Saving vs. Savings
Why are MPC and MPS always constant
MPC vs. MPS
MPS+MPC=1
^C/^DI
^S/^DI
Constant
APC vs. APS
DI *Plus
APS
Plus
APC
Minus
APS + APC = 1
C/DI
S/DI
Non-Income Determinants
Borrowing
Consumption
Opposite
Timely
Expectations +
C +
S -
Wealth +
S -
C +
Policy
Taxes +
C -
S -
Interest +
C -
S +
