3. Political turbulences and the pandemic affected Hong-Kong's consumer confidence significantly in 2020. Now, that the pandemic is under control in Hong Kong, marginal propensity to consume has increased from 0.5 to 0.7. a. Use the consumption model to assess the effects of an increase in marginal propensity to consume (MPC) on overall consumption. Use the model (math) and the graphs. Explain. b. How it will affect overall aggregate demand and income?

3. Political turbulences and the pandemic affected Hong-Kong's consumer confidence significantly in 2020. Now, that the pandemic is under control in Hong Kong, marginal propensity to consume has increased from 0.5 to 0.7. a. Use the consumption model to assess the effects of an increase in marginal propensity to consume (MPC) on overall consumption. Use the model (math) and the graphs. Explain. b. How it will affect overall aggregate demand and income?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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