I guess this particularly makes sense as the tax rate is proportional to your income through the pertaining tax threshold, so the tax rate (t) will vary, and therefore T also changes ^ ^
Khan Academy, you're math is nonsense. The MARGINAL propensity to consume, applies to a CHANGE in disposable income, not to total income and tax. It's the AVERAGE propensity to consume: C/Yd which applies to disposable income: C = c1 Yd + Co C = (C/Yd)Yd + Co C = C + Co 0 = Co
Though the videos are very informative, they are not in order! Hopefully the future study material series' would be updated in order. Thank you.
Cant believe this was made when I was in middle school and now I am watching this after graduating.
I guess this particularly makes sense as the tax rate is proportional to your income through the pertaining tax threshold, so the tax rate (t) will vary, and therefore T also changes ^ ^
nice video sal!
Thanks a lot.
nice
Braingasm
how does all the credit crisis factor into this???
there are alot of people living around the world that live paycheck to paycheck
2nd!
Khan Academy, you're math is nonsense. The MARGINAL propensity to consume, applies to a CHANGE in disposable income, not to total income and tax.
It's the AVERAGE propensity to consume: C/Yd
which applies to disposable income:
C = c1 Yd + Co
C = (C/Yd)Yd + Co
C = C + Co
0 = Co