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But there are many other factors other than people's propensity to consume that you need to account for. And I'm not sure if this degree of raise in income prac
by jganetsk 13y ago
But there are many other factors other than people's propensity to consume that you need to account for. And I'm not sure if this degree of raise in income practically changes marginal propensity to consume that much.
- dragonwriter 13y ago> But there are many other factors other than people's propensity to consume that you need to account for. Not to determine short-term demand effects of redistribution of income there isn't. > And I'm not sure if this degree of raise in income practically changes marginal propensity to consume that much. Probably not, but since marginal propensity to consume is the amount of the next dollar of income that will go to consumption, that means that the consumption effects are fairly straightforward if you have an idea of marginal propensity to consume.