Question

Swed 0 Updates are Check If the proportion of the total disposable income spent on consumer goods and services is 93.2 percent and if consumers spend 84.5 percent of each additional dollar, what is Instructions: Enter your responses rounded to three decimal places. a. The APC? b. The APS? c. The MPC? d. The MPS? < Prev 5 of 7 Score answer B9 SA SO A . 1 0 $ 4 % 5 & 7 # 3 8 9 6 2 P O 3 R. E Y UT T L K L H G A S DF S V N B Z X C

Answer 1

It given that proportion of the total disposable income [:n on and spent consumer good Implying So, APC- services is 93.2% 0.932 • APLIC APC = 93.2. = Y v 0.932 we know APC + APS a 1 APS = I-APC- - 0.932 APS 0.068 a) APC = 0.932 b) ApS = 0.068 So', It's given that consumer spends 84.5% of each Additional dollar implying ; MP C = AC = 84.5% = 0.845 Ay we know : MPC & MPS = 1 MPS= 1- MPC 1-0.845 MPS = 0.155 So, c) The MPL 2 0.845 d) The MPS = 0.155