Homework Answers
Answer: A. .80
Marginal propensity of consume is change in consumption due to change in income
Marginal propensity to consume (MPC) = change in consumption / change in income
MPC = Δ C/ ΔY
|
Disposable income $ |
Change in income (ΔY) (Yn – Yn-1) |
Consumption |
Change in consumption (cn – cn-1)Δ C |
|
200 |
- |
205 |
- |
|
225 |
25 |
225 |
20 |
|
250 |
25 |
245 |
20 |
|
275 |
25 |
265 |
20 |
|
300 |
25 |
285 |
20 |
MPC = 20 / 25
MPC = .80
Add Answer to:
Disposable Income Consumption $200 $205 225 225 250 245 275 265 300 285 22. Refer to...
Table A Disposable Income Consumption $200 $205 225 225 250 245 275 265 285 300 Use...
Table A Disposable Income Consumption $200 $205 225 225 250 245 275 265 285 300 Use information above to answer question 1 and 2 1. WHAT IS THE MPC. 2. If disposable income was $325, we would expect consumption to be: Table B Disposable Income Saving -$10 100 150 20 200 3. Use table B: At the $150 level of income, the average propensity to save is:
$140 Table: Income and Consumption Disposable Personal Income Consumption $100 220 300 300 400 380 300...
$140 Table: Income and Consumption Disposable Personal Income Consumption $100 220 300 300 400 380 300 460 200 108. (Ref 28-4 Table: Income and Consumption) Use Table: Income and Consumption. When disposable personal income is $200, the marginal propensity to consume is: a. 0.00 b. 0.20 c. 0.80 d. 1.40 mant or foreign sector), disposable income increases from $2,0
Year The accompanying table presents hypothetical data on aggregate consumption expenditure and disposable income in millions...
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:
Economists refer to the simple relationship between consumption and disposable income as: autonomous consumption. the marginal...
Economists refer to the simple relationship between consumption and disposable income as: autonomous consumption. the marginal propensity to consume. the absolute disposable income hypothesis. disposable income. the consumption function.
Consider the following table for a? household's consumption expenditures and disposable income. To the nearest? dollar,...
Consider the following table for a? household's consumption expenditures and disposable income. To the nearest? dollar, compute desired saving at each level of disposable income. ?(Enter your responses as whole numbers and include a minus sign where? appropriate.) Income Consumption Savings ?$0 ?$100 ?$ ?$100 ?$150 ?$ ?$200 ?$200 ?$ ?$300 ?$250 ?$ ?$400 ?$300 ?$ ?$500 ?$350 ?$ The marginal propensity to save is ____. ?(Enter your response rounded to two decimal? places.) The marginal propensity to save ____...
Based on the data below, calculate the Average Propensity to Consume at a disposable income of...
Based on the data below, calculate the Average Propensity to Consume at a disposable income of $500 Aggregate Disposable Income Consumption $ billions) $ billions) so $80 $100 $200 $300 $400 $500 $160 $220 $300 $380 $460 0.80 O$80 0.08 0.92 2.5 pts D Question 31 If disposable income increases from $450 to $470 bi propensity to save (MPS)? llion and savings increases from $15 to $20 billion, what is the marginal 0.25 0.02
Suppose the following table describes the relation of consumption spending to the disposable income Disposable Income...
Suppose the following table describes the relation of consumption spending to the disposable income Disposable Income (Yp)|400 500 600 700 800 Consumption ( 390 470 550 630 710 (a) Derive the consumption function. Explain the two components of (e) What is the level of saving when the level of income equals to $900, to $350, to $300? Redraw the graphs from points (a) and (d) and show the areas of saving and dissaving. (f) Suppose income grows from $850 to...
The following table shows income and consumption. 350 Consumption $70 280- Income $100 $200 $300 $400...
The following table shows income and consumption. 350 Consumption $70 280- Income $100 $200 $300 $400 $500 $140 $210 $280 $350 Consumption ($) Using the multipoint curved line drawing tool, draw the consumption function given the data in the table above. Label this line 'C'. Carefully follow the instructions above, and only draw the required object. The slope of the line represents Ő 100 200 300 Income ($) 400 500 O A. government spending. O B. autonomous consumption. O C....
4. Given the following income, spending and savings data, please answer the questions below: Disposable Income (DI)...
4. Given the following income, spending and savings data, please answer the questions below: Disposable Income (DI) Consumption (C) Savings (S) $ 0 $ 1000 $ 5000 $ 5000 $10000 $15000 $20000 $ 9000 $13000 $17000 a. Solve for savings at each level of disposable income (DI). b. Solve for the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) between each disposable income level. d. Solve for the average propensity to consumer (APC) and the average...
Table A Disposable Income Consumption $200 $205 225 225 250 245 275 265 285 300 Use information above to answer question 1 and 2 1. WHAT IS THE MPC. 2. If disposable income was $325, we would expect consumption to be: Table B Disposable Income Saving -$10 100 150 20 200 3. Use table B: At the $150 level of income, the average propensity to save is:
$140 Table: Income and Consumption Disposable Personal Income Consumption $100 220 300 300 400 380 300 460 200 108. (Ref 28-4 Table: Income and Consumption) Use Table: Income and Consumption. When disposable personal income is $200, the marginal propensity to consume is: a. 0.00 b. 0.20 c. 0.80 d. 1.40 mant or foreign sector), disposable income increases from $2,0
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:
Based on the data below, calculate the Average Propensity to Consume at a disposable income of $500 Aggregate Disposable Income Consumption $ billions) $ billions) so $80 $100 $200 $300 $400 $500 $160 $220 $300 $380 $460 0.80 O$80 0.08 0.92 2.5 pts D Question 31 If disposable income increases from $450 to $470 bi propensity to save (MPS)? llion and savings increases from $15 to $20 billion, what is the marginal 0.25 0.02
Suppose the following table describes the relation of consumption spending to the disposable income Disposable Income (Yp)|400 500 600 700 800 Consumption ( 390 470 550 630 710 (a) Derive the consumption function. Explain the two components of (e) What is the level of saving when the level of income equals to $900, to $350, to $300? Redraw the graphs from points (a) and (d) and show the areas of saving and dissaving. (f) Suppose income grows from $850 to...
The following table shows income and consumption. 350 Consumption $70 280- Income $100 $200 $300 $400 $500 $140 $210 $280 $350 Consumption ($) Using the multipoint curved line drawing tool, draw the consumption function given the data in the table above. Label this line 'C'. Carefully follow the instructions above, and only draw the required object. The slope of the line represents Ő 100 200 300 Income ($) 400 500 O A. government spending. O B. autonomous consumption. O C....
4. Given the following income, spending and savings data, please answer the questions below: Disposable Income (DI) Consumption (C) Savings (S) $ 0 $ 1000 $ 5000 $ 5000 $10000 $15000 $20000 $ 9000 $13000 $17000 a. Solve for savings at each level of disposable income (DI). b. Solve for the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) between each disposable income level. d. Solve for the average propensity to consumer (APC) and the average...
Most questions answered within 3 hours.
-
Intrapreneurship is defined as the
development of an enterprise culture with an existing (Nandan,
2009). An...
asked 7 minutes ago -
QUESTION 1 Tamiflu is a drug used to treat influenza. A study
found that Tamiflu reduced...
asked 11 minutes ago -
Which of the following would be less likely to be used to
allocate factory overhead when...
asked 16 minutes ago -
Transverse pulses travel with a speed of 195 m/s along a taut
copper wire whose diameter...
asked 15 minutes ago -
Sampling for Engineers Homework question 11.51
Suppose that Y1;Y2;Y3;Y4 denote a random sample from a
Poisson(θ)...
asked 18 minutes ago -
Which of the following is cleaved by regulated intramembrane
proteolysis (RIP)? Select any/all answers that apply....
asked 18 minutes ago -
Random characters You decide to create a program characters.py
that fills a two-dimensional list with random...
asked 30 minutes ago -
What are the major sources of error in your determination of the
molar mass? Select all...
asked 34 minutes ago -
A. Suppose your manager indicates that for a normally
distributed data set you are analyzing, your...
asked 55 minutes ago -
During the month of August, the average temperature of a lake
next to a local college...
asked 37 minutes ago -
Which of these four researchers is most likely to have made Type
1 error
Kim who...
asked 51 minutes ago -
In a performance test, each of two cars takes 8.9 s to
accelerate from rest to...
asked 51 minutes ago