Keynes theory

Economics

What is the mean of highlighted part what is the reason of that MPC high in under develop country?

Sumita Shah

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01-Mar-22 16:54

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Answers (3)

This is because of basic necessities, such as food, shelter, clothing and entertainment, make up a larger fraction of a poor person's income

Yoga Vishnu

CA Final

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02-Mar-22 10:29

Yoga Vishnu

This is because of basic necessities, such as food, shelter, clothing and entertainment, make up a larger fraction of a poor person's income

I can't understand

Thread Starter

Sumita Shah

CA Inter

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04-Mar-22 16:47

Generally - At low-income levels, an increase in income is likely to see a high MPC. This is because people on low incomes have many goods/services they need to buy. On the other hand, at higher income levels, people tend to have a greater preference to save because they have most goods they need already

Yoga Vishnu

CA Final

★ 11K+

04-Mar-22 17:48