a) If a household earns £200 a week and spends £150 each week on domestically produced goods and services, how much does it withdraw from the circular flow? .................................................................................................... (b) What forms will these withdrawals take?................................................................................ (c) Assume that total household incomes rise from £500bn to £550bn. Assume that this results in the consumption of domestically produced goods and services rising from £450bn to £490bn. What is the mpcd? ....................................................................................................
(a) If a household earns £200 a week and spends £150 each week on domestically produced goods and services, how much does it withdraw from the circular flow?
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(b) What forms will these withdrawals take?................................................................................
(c) Assume that total household incomes rise from £500bn to £550bn. Assume that this results in the consumption of domestically produced goods and services rising from £450bn to £490bn. What is the mpcd?
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