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Determination of Consumption Multiplier

Determination of Consumption Multiplier

aggregate demand function

Determination of Consumption Multiplier Marginal Propensity to Consume is the rate of change in consumption for the change in income. In macroeconomics consumption multiplier (CM) is a very old concept but now this is neglected due to more precise National Income Multiplier (NIM). Consumption multiplier helps us to understand other multipliers. It is very simple but it … [Read more...] about Determination of Consumption Multiplier

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