What is the marginal propensity to expend.


Expansionary monetary policy and contractionary monetary policy

Explain the difference between expansionary monetary policy and contractionary monetary policy.

also,

Suppose when income is $10,000, aggregate expenditures are also $10,000. If income were hypothetically $0, aggregate expenditures would be $2,500.

a. At an income of $10,000, what are induced expenditures?
b. At an income of $10,000, what are autonomous expenditures?
c. What is the marginal propensity to expend?
d. What is the multiplier?

 

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Business Economics: What is the marginal propensity to expend.
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