The Policies That Seemed to Be Effective During the Great

question 149

True/False

The policies that seemed to be effective during the Great Moderation seemed to be inadequate to fight the Great Recession.

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Definitions:

APC

It is defined as the proportion of income that goes into consumption expenses, termed as the Average Propensity to Consume.

Disposable Income

Fiscal assets at households' disposal for spending and saving after income taxes have been subtracted.

Consumption

Households' utilization of both products and services.

MPS

The marginal propensity to save, which is the fraction of additional income that is saved.