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ppf (graph (the graph, shape: concave to origin, marginal rate of…

- - - - goods used in the production of other goods
    - - goods used by consumer for personal use
- - - - so investment relate to interest rate R
      - 4.balabalabala R & I have a negative relationship
  - - - cost of maintaining existing assets
    - - R: a proportion, 0<R<1
      - I1: money spent on buying additional assets
  - - - exogenous mode
- - - - C1
        
        0<C1<=1
        
        the proportion of Yd that is spent on consumption
        
        mpc: marginal propensity to consume
        
        the extra consumption society will make out of every extra 1e earnt
        
        for poor &rich
        
        high Y
        
        low mpc
        
        low Y
        
        high mpc
- - - - function
        
        graph