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When a New Issue of Stock Is Brought to Market,the

question 30

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When a new issue of stock is brought to market,the marginal investor determines the price at which the stock will trade.

Differentiate between induced consumption and other forms of consumption.
Comprehend how income levels affect consumption and savings, based on the consumption function.
Identify the most important determinants influencing the level of consumption.
Calculate Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS).

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