Homework Answers
Answer:
(1) As we know that,
Given,Change in Consumption=$1000-$900=$100 and Change in disposable income=$1600-$1400=$200
Thus, 
(2) If MPC=0.5
Autonomous Consumption (A)=$800 and Disposable income (Yd)=$1500
Then, Consumption=A+MPC*Yd=$800+0.5*$1500=$800+$750=$1550
Add Answer to:
1. Suppose consumption rises from $900 to $1000 and disposable income rises from $1400 to $1600....
Use the table below to determine the MPC and MPS. Disposable Income Consumption Saving $1000 $1100...
Use the table below to determine the MPC and MPS. Disposable Income Consumption Saving $1000 $1100 -$100 2000 1600 400 3000 2100 900 1. Using the above information, what is the MPC and MPS when the DI is 3000? MPC = MPS = 2. What equation could you use to determine the Multiplier, using MPC and MPS? Multiplier = Multiplier = 3. If there is an initial investment spending of $5,000; what would the total change in GDP...
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...
If Disposable Income rises from $50,000 to $70,000, and consumption rises from $40,000 to $55,000, calculate...
If Disposable Income rises from $50,000 to $70,000, and consumption rises from $40,000 to $55,000, calculate the MPC and the MPS.
Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and...
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...
1600 1500 . 1400 1300 1200 1100 1000 900 800 30 35 40 45 50 55...
1600 1500 . 1400 1300 1200 1100 1000 900 800 30 35 40 45 50 55 60 Lean Body Mass Strongly curvi-linear O Roughly linear O Both answers are correct. Save and Subn
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,...
A,B,C,D Given this information, answer the following questions: A) How much will consumption increase if disposable...
A,B,C,D
Given this information, answer the following questions: A) How much will consumption increase if disposable income increases by $400? Show your work. B) Suppose there is a decrease in investment of S1,200. What will be the total decrease in Real GDP caused by this decrease in investment? Show your work. C) If autonomous consumption is S100, write the consumption function of this economy. D) If the economy's savings rate decreases, how will this most likely affect the MPC (increase,...
Suppose when disposable income (D) is $1000/month, consumption (C) is $400/month. When disposable income is $2500/month,...
Suppose when disposable income (D) is $1000/month, consumption (C) is $400/month. When disposable income is $2500/month, consumption increases to $700/month. Which of the following equation represents the relationship between consumption and disposable income in this example?
Suppose Ginny gets a sales bonus at her place of work that gives her an extra $600 of disposable income. She chooses to...
Suppose Ginny gets a sales bonus at her place of work that gives her an extra $600 of disposable income. She chooses to spend $360 and save the remaining $240. From this, you can tell that Ginnys marginal propensity to consume (MPC) is ______ and her marginal propensity to save is ____ Mathematically, it must always be true that: Saving = Disposable Income + Consumption Consumption - Disposable Income Disposable Income - Consumption Therefore, it must also be true that:...
Suppose the marginal propensity to consume if 0.75 and autonomous consumption (consumption at zero income) is...
Suppose the marginal propensity to consume if 0.75 and autonomous consumption (consumption at zero income) is $4,000. If income is $50,000, consumption spending is a. $37,500 b. $41,500 C. $45,500 d. $54,000 QUESTION 4 If the consumption function for an economy is C = 180 + 75 Yd (disposable income) and spending increases by $800, then the resulting change in national income is a. +$2,800 OOO b. 5-3,200 c. $-2,800 d. $+3,200 QUESTION 5 Assume the actual GDP is $4800...
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...
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...
1600 1500 . 1400 1300 1200 1100 1000 900 800 30 35 40 45 50 55 60 Lean Body Mass Strongly curvi-linear O Roughly linear O Both answers are correct. Save and Subn
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,...
A,B,C,D
Given this information, answer the following questions: A) How much will consumption increase if disposable income increases by $400? Show your work. B) Suppose there is a decrease in investment of S1,200. What will be the total decrease in Real GDP caused by this decrease in investment? Show your work. C) If autonomous consumption is S100, write the consumption function of this economy. D) If the economy's savings rate decreases, how will this most likely affect the MPC (increase,...
Suppose the marginal propensity to consume if 0.75 and autonomous consumption (consumption at zero income) is $4,000. If income is $50,000, consumption spending is a. $37,500 b. $41,500 C. $45,500 d. $54,000 QUESTION 4 If the consumption function for an economy is C = 180 + 75 Yd (disposable income) and spending increases by $800, then the resulting change in national income is a. +$2,800 OOO b. 5-3,200 c. $-2,800 d. $+3,200 QUESTION 5 Assume the actual GDP is $4800...
Most questions answered within 3 hours.
-
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 6 minutes ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 37 minutes ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 2 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 2 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 3 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 4 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 4 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 4 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 4 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 5 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 5 hours ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 5 hours ago