Society, Politics & Law
Economics and the 2008 crisis: a Keynesian view
...axes at right-angles to each other. Activity 3 The horizontal axis of Figure 4 shows income (Y) and the vertical axis shows planned consumption (C). Figure 4 Plotting planned consumption against income Suppose that consumers plan to spend 70 pence of each additional pound they earn. The marginal propensity to consume is 0.7. The usual symbol for the marginal propensity to...