Chapter 10 matching definitions

1. (   ) Shows the amounts households plan to spend for consumer goods at different levels of disposable income.
2. (   ) The share of the additional dollar a person decides to save.
3. (   ) Percent of disposable income that household spend on consumer goods.
4. (   ) Tendency for people to increase or decrease consumption spending when the value of their financial assets changes.
5. (   ) Shows the amounts households plan to save at different levels of disposable income.
6. (   ) The share of the additional dollar a person decides to devote to consumption expenditures.
7. (   ) Percent of disposable income that household save
8. (   ) Increased savings may be both good and bad for the economy.
9. (   ) The ratio of a change in equilibrium GDP to the change in investment.
10. (   ) The line along which the value of output is equal to the value of aggregate expenditures.

a. Consumption schedule

b. Marginal  propensity to save (MPS)

c. Average propensity to consume (APC)

d. Wealth effect

e. Savings schedule

f. Marginal  propensity to consume (MPC)

g. Average propensity to save (APS)

h. Paradox of thrift

i. Multiplier

j. 45 degree line