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It Has Been Estimated That the Marginal Propensity to Consume

question 73

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It has been estimated that the marginal propensity to consume out of tax rebate money is around 1/3 which means the multiplier from just tax rebate programs will b about 3.


Definitions:

Expanded Accounting Equation

Assets = Liabilities + Capital – Withdrawals + Revenue – Expenses.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of the owners.

Ledger

A comprehensive collection of a company's accounts, where transactions are recorded in detail.

Account

A report or record that maintains the details of each financial transaction a company engages in.

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