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Define the Marginal Propensity to Consume (MPC)and the Marginal Propensity

question 81

Essay

Define the marginal propensity to consume (MPC)and the marginal propensity to save (MPS), and explain why MPC + MPS always equals 1.


Definitions:

Life Position

Feelings of regard for self and others, as reflected in one’s self-esteem.

Self-Esteem

The evaluation of one's own worth or value as reflected in their thoughts, feelings, and behaviors towards themselves.

Face

A person’s positive perception of himself or herself in interactions with others.

Symbolic Self-Awareness

Uniquely human ability to think about oneself and use language (symbols) to represent oneself to others.

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