Due to presence of HOMEWORKLIB POLICY, I am answering one question.
6.
a.
Income(Y) = 8000
Saving = 2000
Consumption = 8000 - 2000 = 6000
APC = C/Y = 6000 / 8000 = 0.75
b.
Rise in income = 2000
Rise in savings 2800 - 2000 = 800
MPS = 800 / 2000 = 0.4
MPC = 1 - MPS = 1 - 0.4 = 0.6
c.
New consumption = 10000 - 2800 = 7200
New APC = C / Y = 7200 / 10000 = 0.72
APC fell with rise in income.
6. Suppose a family's annual disposable income is $8000 of which it saves $2000. (a) What...
Collabon Short-Answer, Essays, and Problems 1. What are the relationships among consumption, saving, and disposable income? 2. Define the consumption schedule. 3. Describe the saving schedule. 4. Explain how consumption and saving are related to disposable income in the aggregate expenditures model. 5. Fill in the table below. Describe your result. Disposable Income Consumptio Saving $200 $210 $ $220 $230 $10 $260 $20 $280 $300 6. Complete the following table assuming that (a) MPS - 1/5, (b) there is no...
039. What do the following acronyms stand for, and what do they mean briefty? Q39A. Autarky Q39B. VER Q39C. NTB 039D. 040. Suppose a family's annual disposable income is $16,000 of which it saves $4,000 (a) What is their APC? (b) If income rises to $20,000 and they plan to save $5,600, what are MPS and MPC? Did the family's APC rise or fall with their increase in income?
Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respectively. Next, assume that disposable income increases by $80 billion, corisumption rises by $56 blillion, and saving goes up by $24 billion. a. What is the economy's MPC? Instructions: Round your answers to 2 decimal places MPC= What Is its MPS? MPS b. What was the APC before the increase in disposable income? Instructions: Round your answer to 2 decimal places. APC...
10. Complete the accompanying table. Level of output and Income (GDP = DI) Consumption Saving APC APS MPC MPS $100 $105 -$5 1.05 125 $125 1.00 150 0.97 0.94 200 $145 $165 $185 $205 $225 $245 $265 225 |||||||| 0.925 0.91 0.90 0.89 0.88 250 275 300 (a) What is the break-even level of income? How is it possible for households to dissaye at very low income levels? (b) If the proportion of total income consumed decreases and the proportion...
The consumption function is given by the equation: C = 400 + 0.8(Yd) where C = consumption and Yd = disposable income. Currently, the level of disposable income is $5000. What is the current level of consumption? What is the current level of saving? What is the MPC? What is the MPS? Calculate the APC and the APS. 6. We are given the following information about the levels of disposable income and savings: Disposable Income Consumption Savings APC APS MPC...
8. Complete the accompanying table. Level of output and income (GDP = DI) Consumption Saving APC APS MPC MPS $100 $ -$5 125 (a) What is the break-even level of income? How is it possible for households to dissave at very low income levels?
Keynesian Consumption Function (billions of dollars per year) Real disposable income Consumption Saving MPC MPS $100 200 300 400 500 $150 200 250 300 350 a.) Calculate the saving schedule. b. Determine the marginal propensities to consume (MPC) and save (MPS). c. Determine the break-even income. d.) What is the relationship between the MPC and the MPS? 3. Explain why the MPC and the MPS must always add up to one. 4. How do households "dissave" 5. Explain how each...
Year The accompanying table presents hypothetical data on aggregate consumption expenditure and disposable income in millions of dollars over five years. Disposable income (in millions) Consumption expenditure (in millions) 175 2013 200 2014 225 2015 280 193.75 235 268.75 250 2016 325 2017 300 a. What is the marginal propensity to consume (MPC)? MPC: b. What is the marginal propensity to save (MPS)? MPS:
I just need answers for 1, 2, 4, 6, 10, 9, 1. What factors other than disposable income affect consumption and saving? What happens to consumption and saving if taxes increase? 2. Describe the major non-interest determinants of investment spending. What is the relationship between the real interest rate and investment spending? 3. Suppose a family's disposable income is $8,000 and it saves $2000 If their income rises to $10,000 and they plan to save $2800, what are their MPC...
if c=20 +0.9Y c=consumption y=disposable income=800 billion what is the multiplier? also calculate MPS MPC APS APC and what is the value of saving for the nation? Question 2 If C = 20 + 0.99 C= Consumption Y = disposable income = $800 billion What is the Multipler? Ob.0.1