And when the reality of the new bankruptcy law kicks in, the MPC of the working class might erode.
On Fri, Jul 15, 2005 at 05:32:43AM -0400, Paul wrote: > > Do you have a "back of the envelope" sense for how this breaks down? If > workers continued their previous marginal propensity to consume (say 1980), > what would be the reduction in aggregate demand and how does that compare > with the other components of demand? > > Paul -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
