Ans d.) 1 - MPS
The slope of consumption line is termed as Marginal Propensity to Consume (MPC). It shows how the consumption changes due to a change in income. The value of MPC lies between 0 and 1.
Since MPC + MPS = 1 ; where MPS = Marginal propensity to save, which shows how savings changes due to a change in income.
Therefore from above MPC = 1 - MPS
What is the slope of the consumption schedule or consumption line for a given economy? Multiple...
If the consumption schedule is a straight line, it can be concluded that the Multiple Choice APC is necessarily constant. NPCIs zero. MPC is constant at various levels of income. APC is equal to the MPC.
Which of the following relations is not correct? Multiple Choice 1- MPC MPS MPC + MPS = 1. MPS = MPC + 1. APS + APC = 1.
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...
The table below depicts the consumption schedule for an economy. Assume there are no taxes in this economy Disposable Income and Consumption Disposable Inc Consumption (dollars) (dollars) $0 $25,000 10,000 20,000 30,000 40.000 40,000 45,000 50,000 60.000 References Instructions: Use the tool provided 'C' to plot the consumption line point by point points total). Use the tool Equilibrium' to graph where consumption equals disposable income, plot the equilibrium line point by point use each disposable income entry in the table...
ADVANCED ANALYSIS Suppose that the linear equation for consumption in a hypothetical economy is: C= 60 + 0.7Y Also suppose that income (Y) is $600. Determine the following values: Instructions: For parts a, b, d, and f, round your answers to 2 decimal places. For parts cand e, enter your answers as whole numbers. a. MPC = b. MPS = c. Consumption d. APC = e. Saving = 1. APS =
need answer
QUESTION 24 Given the table below which of the following statements is TRUE? Consumption Savings MPC MPS APC APS Level of output 240 -4 260 0 280 4 300 8 320 12 340 16 360 20 380 24 400 28 A. Equilibrium is obtained when the level of output is 280 O B. When the level of output is 320 APS is equal to 0.375 OC. When the level of output is 360 APC is 0,94 OD When...
Assume that, without taxes, the consumption schedule of an
economy is as follows:
a. What is the value of the MPC?
_______
.Graph the resulting consumption
schedule.
Instructions: Use the tool provided 'CE' to draw
the consumption schedule. Plot 8 points total.
b. Assume now that a lump-sum tax is imposed such that the
government collects $10 billion in taxes at all levels of GDP. Add
the after-tax consumption to the table below.
Compare the MPC and the
multiplier with...
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
Econ 2)1 Given the following figures, calculate savings, MPC, MPS, and Multiplier (20 points) 1. C S MPC MPS APC APS GDP 325 320
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?