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The marginal propensity to save ( MPS) is the fraction of an increase in income that is not spent and instead used for saving. It is the slope of the line plotting saving against income. [ 1] For example, if a household earns one extra dollar, and the marginal propensity to save is 0.35, then of that dollar, the household will spend 65 cents ...
The marginal propensity to consume is measured as the ratio of the change in consumption to the change in income, thus giving us a figure between 0 and 1. The MPC can be more than one if the subject borrowed money or dissaved to finance expenditures higher than their income. The MPC can also be less than zero if an increase in income leads to a ...
DuPont analysis (also known as the DuPont identity, DuPont equation, DuPont framework, DuPont model, DuPont method or DuPont system) is a tool used in financial analysis, where return on equity (ROE) is separated into its component parts. Useful in several contexts, this "decomposition" of ROE allows financial managers to focus on the key ...
An ideal 4-stage Dickson multiplier (5× multiplier) with an input of 1.5 V would have an output of 7.5 V. However, a diode-wired MOSFET 4-stage multiplier might only have an output of 2 V. Adding parallel MOSFETs in the linear region improves this to around 4 V. More complex circuits still can achieve an output much closer to the ideal case. [7]
A graph showing the impact on some endogenous variable, over time (that is, the multipliers for times t, t+1, t+2, etc.), is called an impulse-response function. [2] The general method for calculating impulse response functions is sometimes called comparative dynamics .
Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. This concept is one of the key building blocks of break-even analysis.
Lagrange multiplier. In mathematical optimization, the method of Lagrange multipliers is a strategy for finding the local maxima and minima of a function subject to equation constraints (i.e., subject to the condition that one or more equations have to be satisfied exactly by the chosen values of the variables ). [ 1]
Fiscal multiplier. In economics, the fiscal multiplier (not to be confused with the money multiplier) is the ratio of change in national income arising from a change in government spending. More generally, the exogenous spending multiplier is the ratio of change in national income arising from any autonomous change in spending (including ...