The Martin family has a disposable income of $90,000 annually. Currently, the Martin family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.8 and that their autonomous consumption spending is equal to $10,000. What is the amount of the Martin family's annual consumer spending? 2$

The Martin family has a disposable income of $90,000 annually. Currently, the Martin family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.8 and that their autonomous consumption spending is equal to $10,000. What is the amount of the Martin family's annual consumer spending? 2$

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter8: The Keynesian Model

Section: Chapter Questions

Problem 6SQ

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