Homework Answers
Solution -
Option D.Consumption decreases and the amount of saving decreases is Correct Option
Reason -
here above graph shows how changes in income affect on the consumption and saving. at right to left always
consumption and saving both decreases at left ward so given option D is Correct Option
NOTE - DO UP VOTE HAVE A NICE DAY.
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QUESTION 17 45° C 2 Disposable Income 3 Refer to the consumption schedule shown in the...
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...
Table C_6 Disposable Income and Consumption Saving (S) O Disposable income (Y) Consumption (C) 1000 2,000...
Table C_6 Disposable Income and Consumption Saving (S) O Disposable income (Y) Consumption (C) 1000 2,000 TI T LLLLL 5,000 _ 12,000 13.000 T L Refer to Table C_6. Assuming MPC=0.6, the break-even level of disposable income=_.(Do not enter a $ sign. Include a negative sign, if a negative number)
7 and 8 QUESTION 7 Planned Consumption 40 10 20 Real Disposable Income/Yoar Refer to the...
7 and 8
QUESTION 7 Planned Consumption 40 10 20 Real Disposable Income/Yoar Refer to the above figure. Autonomous consumption equals $5000. 0. -$5000 $25,000 QUESTION 8 According to Keynes consumption is directly related to income but saving has no relationship with income. consumption is directly related to income but saving is inversely related to income. both consumption and saving are positively related to real disposable income. e consumption is positively related to the interest rate.
Collabon Short-Answer, Essays, and Problems 1. What are the relationships among consumption, saving, and disposable income?...
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...
Macroeconomics Assignment 2 1. The table shows disposable income and consumption expenditure in an economy. Use...
Macroeconomics Assignment 2 1. The table shows disposable income and consumption expenditure in an economy. Use the table to work Problems A and B. Disposable Consumption income expenditure (Billions of dollars) 800 1,000 A. Calculate saving at each level of disposable income. Over what range of disposable income does consumption expenditure exceed disposable income? Calculate autonomous consumption expenditure. B. Calculate the marginal propensity to consume. At what level of disposable income will savings be zero? If expected future income increases,...
When Monica spends more than her disposable income, Monica is O A. unemployed. O B. dissaving....
When Monica spends more than her disposable income, Monica is O A. unemployed. O B. dissaving. O C. investing. D. saving. Question Help According to the figure at right, planned consumption and income are equal at an income level of 45 Y1 Y2YoYs Real Disposable Income (S per year) -Ques According to the figure at right, the average propensity to save (APS) is zero at point O A. F O B. D OC. J OD. I 45 Y1 Y2 Y....
Question 19 (1 point) Saved Disposable income is: 1) consumption minus taxes. 2) income minus saving....
Question 19 (1 point) Saved Disposable income is: 1) consumption minus taxes. 2) income minus saving. 3) income after adding transfers and subtracting taxes 4) the same as "income". 5) income minus both saving and taxes. Question 20 (1 point) Suppose nominal GDP increases in a given year. Based on this information, we know with certainty that: 1) the price level (GDP deflator) has increased. 2) real output has decreased and the price level has increased. 3) either real output...
QUESTION 21 2 C1 0 Income Refer to the given graph. A shift of the consumption...
QUESTION 21 2 C1 0 Income Refer to the given graph. A shift of the consumption schedule from C2 to C1 might be caused by a(n) O increase in real GDP decrease in income tax rates. reverse wealth effect, caused by a decrease in stock market prices. O decrease in saving.
Given that C = $2,000 + 0.60YD, if the level of disposable income is $1,000, the...
Given that C = $2,000 + 0.60YD, if the level of disposable income is $1,000, the level of saving is $400. $600. -$600. Saving will be negative when consumption exceeds disposable income. Use the given formula where C=consumption and Y=the level of disposable income: C = $1,000 + .6($1,000) = $1,600. So when consumption of $1,600 is more than disposable income of $1,000, the difference is a decrease in saving of -$600. -$1600.
In an economy, when disposable income increases from $400 to $500, consumption expenditure increases from $420...
In an economy, when disposable income increases from $400 to $500, consumption expenditure increases from $420 billion to $500. Calculate the marginal propensity to consume, the change in saving, and the marginal propensity to save. The marginal propensity to consume is 0.80. >>> Answer to 2 decimal places. When disposable income increases from $400 billion to $500 billion, saving increases by $ 20 billion. The marginal propensity to save is 0.20 >>> Answer to 2 decimal places.
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...
Table C_6 Disposable Income and Consumption Saving (S) O Disposable income (Y) Consumption (C) 1000 2,000 TI T LLLLL 5,000 _ 12,000 13.000 T L Refer to Table C_6. Assuming MPC=0.6, the break-even level of disposable income=_.(Do not enter a $ sign. Include a negative sign, if a negative number)
7 and 8
QUESTION 7 Planned Consumption 40 10 20 Real Disposable Income/Yoar Refer to the above figure. Autonomous consumption equals $5000. 0. -$5000 $25,000 QUESTION 8 According to Keynes consumption is directly related to income but saving has no relationship with income. consumption is directly related to income but saving is inversely related to income. both consumption and saving are positively related to real disposable income. e consumption is positively related to the interest rate.
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...
Macroeconomics Assignment 2 1. The table shows disposable income and consumption expenditure in an economy. Use the table to work Problems A and B. Disposable Consumption income expenditure (Billions of dollars) 800 1,000 A. Calculate saving at each level of disposable income. Over what range of disposable income does consumption expenditure exceed disposable income? Calculate autonomous consumption expenditure. B. Calculate the marginal propensity to consume. At what level of disposable income will savings be zero? If expected future income increases,...
When Monica spends more than her disposable income, Monica is O A. unemployed. O B. dissaving. O C. investing. D. saving. Question Help According to the figure at right, planned consumption and income are equal at an income level of 45 Y1 Y2YoYs Real Disposable Income (S per year) -Ques According to the figure at right, the average propensity to save (APS) is zero at point O A. F O B. D OC. J OD. I 45 Y1 Y2 Y....
Question 19 (1 point) Saved Disposable income is: 1) consumption minus taxes. 2) income minus saving. 3) income after adding transfers and subtracting taxes 4) the same as "income". 5) income minus both saving and taxes. Question 20 (1 point) Suppose nominal GDP increases in a given year. Based on this information, we know with certainty that: 1) the price level (GDP deflator) has increased. 2) real output has decreased and the price level has increased. 3) either real output...
QUESTION 21 2 C1 0 Income Refer to the given graph. A shift of the consumption schedule from C2 to C1 might be caused by a(n) O increase in real GDP decrease in income tax rates. reverse wealth effect, caused by a decrease in stock market prices. O decrease in saving.
In an economy, when disposable income increases from $400 to $500, consumption expenditure increases from $420 billion to $500. Calculate the marginal propensity to consume, the change in saving, and the marginal propensity to save. The marginal propensity to consume is 0.80. >>> Answer to 2 decimal places. When disposable income increases from $400 billion to $500 billion, saving increases by $ 20 billion. The marginal propensity to save is 0.20 >>> Answer to 2 decimal places.
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