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 Propens...