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Ivenika [448]
3 years ago
6

The following equation represents a relationship between household consumption expenditure, c and income, y: C= 120+0.65y explai

n what the figure 120 stands for in the consumption income relationship, and the type of
relationship
Advanced Placement (AP)
1 answer:
Keith_Richards [23]3 years ago
4 0
120 is the MPC (marginal propensity consumption), and it has an independent relationship.
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see the attached figure to better understand the problem

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