Question: Hi! Could you help me with this ? What effect will the following have on the marginal propensity to consume (mpc): (a) a rise in

Hi! Could you help me with this ?

What effect will the following have on the marginal propensity to consume (mpc): (a) a rise in the rate of income tax;

(b) the economy begins to recover from recession;

(c) people anticipate that the rate of inflation is about to rise;

(d) the government redistributes income from the rich to the poor? In each case sketch what would happen to the consumption function.

Exercise 2

What is the relationship between the mpc and the mpw?Explain

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