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The real-balances effect refers to the effect that a change in interest rates has on the real value of wealth. T or F A decrease in the interest rate will cause an increase in investment spending. T or F The value of the multiplier is equal to the inverse of the marginal leakage rate. Start studying Aggregate Expenditure Formulas. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Search. Marginal Propensity to Expand (MPE) = AE2- AE1 divided by Y2- Y1. Marginal Leakage Rate (MLR) = Leakage2 - Leakage 1 divided by Y2 - Y1. or = 1-MPE. Total taxes = autonomous taxes + induced taxes. Pressure decay usually states leak rates as scc/m (standard cubic centimeter per minute). For LR leak rate (in scc/m), the formula above is converted to: V x (dP meas – dP no-leak ) x 60 sec/min

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On this page you can find the average standard variable home loan interest rate from 1959 until the present, plus a graph showing the recent history of the RBA 

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