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Given the equations for C,I,G,and NX below,what is the marginal propensity to consume? C = 2,000 + 0.9Y
I = 2,500
G = 3,000
NX = 400
Government Spending
The total amount of money spent by government entities on goods, services, and public projects to fulfill their objectives and responsibilities.
Real Balances Effect
The impact of changing prices on the purchasing power of individuals' money holdings, influencing consumption and savings decisions.
Foreign Purchases Effect
The decrease in domestic demand for goods and services as a result of consumers buying goods from foreign markets, usually due to price or currency exchange advantages.
Interest Rate Effect
The interest rate effect describes how changes in the central bank's interest rate influence the economy by affecting consumer spending and investment.
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