Marginal Propensity to Consume 09─Fine

 

On One Side of the Equation

Fact 1: Paul Samuelson says (1948), “What is true for each is not necessarily true for all; and                       conversely, what is true for all may be quite false for each individual.”

Fact 2: “The marginal thinking” Gregory Mankiw talks about (1998) is applicable to each household,         never to all the households in the economy.

Fact 3: A divide is not necessarily a “margin” that Mankiw refers to. 

Fact 4: In the national income accounting, there are no “margins” but there are divides instead.

The value of each and every marginal dollar or marginal pound is everywhere except for in Cambridge $1.00 or ₤1.00 per annum and even per saeculum. Not to mention, such secularity holds true only with no outside invasions, or ceteris paribus. All in all, Marginal Propensity the Famed equals Average Propensity the Neglected.

      As far as the rest of us are concerned, MPC= APC, MPS= APS, period. Or, one dollar values one dollar while one pound one pound, no matter when and where.

 

On the Other Side of the Equation

Fact 1: “We are all dead in the long run.”

Fact 2: Before death, none of us has been there in Eternity.

Fact 3: Ante mortem, none of us has done that, that is, consumption like Eternity. 

 

Research Proposal

Hypothesis 1: The time in Eternity never lapses over time but it flies across space.

             Corollary 1: The life never cycles over time but it varies across space.

             Corollary 2: The economy never changes over time but it cycles across space.

Hypothesis 2: There in Eternity is such a thing as the baseline consumption with no production.  

Hypothesis 3: There in Eternity is such a thing as Marginal Propensity to Consume and that constant. .

Hypothesis 4: We post mortem observe the Keynesian Cross.

Hypothesis 5: The Eternal spending for, say, “digging a ditch just to refill it,” must multiply                          many times over. For instance, with MPC= 0.8 the multiplier is five (5) eventually and over.

Hypothesis 6: Every once in a distance the time flies to the chiller North. The spending for                          digging will turn that time around.



A liger, fertile or not


Comments

Post a Comment

Popular posts from this blog

Procrustean Art of Backtracking: “Dimensions in Economics”

  The most basic dimension on earth (L 3 ) is the period of time (T) because the time duration in Here is limited for each and every creature, as opposed to in Eternity across the River (L -1 ) where the time stops lapsing (T 0 ).              The second most critical dimension in Economics is the currency unit defined by the Sovereignty as metric across the commonwealth for the value of utilities (U) of all types and kinds. The sources of utilities are not limited to the apple, the orange, the housing, taking a nap, playing with grandchildren and “leisure,” but way beyond our imagination.              Please do not account for anything in terms of mass (“M”) only, be it called “real quantity.” After all, “real” in macroeconomics may  in reality  mean “surreal,” if not “nominal.” As Adam Smith pinpoints, “It’s the consumption utility!”  ...
Read more

Velocity Wanted: A Trade-off in Eternity

    “It was many and many a year ago, In a kingdom by the sea , Those two maidens there lived whom you may know By the name of Annabel and Lee ” (sorry for the so many unauthorized variations).              Both are presupposed to live for 125 years in the kingdom; the royal economy is eternally stuck to “the natural level of output,” or g= 0 in arithmetic of Annabel and Lee. In 25 years after legitimate conception and subsequent birth, the two maidens begin to take different routes of life: the Cambridge way , viz., π= g+ m= m , vs the Princeton way , namely, π= g+ 2m= 2m . Note:   The Cambridge Quantity equation by J.R. Hicks (1937): M d = k ∙ P ∙ Y                                   The money demand by William Baumol from Princeton (1952): M d = ( b ∙ P ∙ Y / 2 i ) 1/...
Read more

Saving "the Market” out of Cambridge: “Roles of Government”

  Multiple Choices as to multiple Claims of us:             Cl. 1. There are lives in Mars.             Cl. 2. An organism can exist on the Moon.             Cl. 3. A society may be built in Death Valley.                 Cl. 4. A free market is untenable without the rule of law. We are:             Ch.1, kidding.             Ch. 2, silly.             Ch. 3, insane.             Ch. 4, sober.   No matter what we or your answers may be, there without the rule of law won’t be such a thing as liberty or freedom in the...
Read more