Question
Suppose that Bob earns $20,000 a year and that Jimena earns $200,000 a year and that both earned a 10% increase in their disposable income.
Suppose that Bob earns $20,000 a year and that Jimena earns $200,000 a year and that both earned a 10% increase in their disposable income. Who do you think is likely to have the higher MPC? Explain your reasoning.
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Macroeconomics A European Perspective
Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
4th Edition
1292360895, 9781292360898
