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Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and...
if c=20 +0.9Y c=consumption y=disposable income=800 billion what is the multiplier? also calculate MPS MPC APS...
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
6. Suppose a family's annual disposable income is $8000 of which it saves $2000. (a) What...
6. Suppose a family's annual disposable income is $8000 of which it saves $2000. (a) What is their APC? (b) If income rises to $10,000 and they plan to save $2800, what are MPS and MPC? (c) Did the family's APC rise or fall with their increase in income? 7. Complete the following table assuming that (a) MPS = 1/5, (b) there is no government and all saving is personal saving. Level of output and income Consumption Saving $250 $260...
Keynesian Consumption Function (billions of dollars per year) Real disposable income Consumption Saving MPC MPS $100...
Keynesian Consumption Function (billions of dollars per year) Real disposable income Consumption Saving MPC MPS $100 200 300 400 500 $150 200 250 300 350 a.) Calculate the saving schedule. b. Determine the marginal propensities to consume (MPC) and save (MPS). c. Determine the break-even income. d.) What is the relationship between the MPC and the MPS? 3. Explain why the MPC and the MPS must always add up to one. 4. How do households "dissave" 5. Explain how each...
5. Graphing the consumption function from the MPC Consider a hypothetical economy in which the marginal...
5. Graphing the consumption function from the MPC Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increases by $1, consumption increases by 50ยข. Suppose further that last year disposable income in the economy was $400 billion and consumption was $350 billion. On the following graph, use the blue line (circle symbol) to plot this economy's consumption function based on these data. Consumption Function CONSUMPTION (Billions of dollars) 0 800...
- - - 800 400 500 600 700 Real disposable income billion) Based on the scatter...
- - - 800 400 500 600 700 Real disposable income billion) Based on the scatter diagram in Figure 8-1, if real disposable income is $800 billion, the consumption spending would be approximately a. S540 billion Pob. $800 billion Ploc $650 billion. d. S420 billion.
The consumption function is given by the equation: C = 400 + 0.8(Yd) where C =...
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 shows the after-tax income and consumption spending for a nation. a. Calculate the...
The table below shows the after-tax income and consumption spending for a nation. a. Calculate the dollar amount of savings, the marginal propensity to consurfe (MPC), and the marginal propensity to save (MPS) for each level of income. Instructions: Enter your answers for savings as a whole number. Round your answers for MPC and MPS to two decimal places. After-Tax Income and Consumption Spending Consumption Spending (dollars) $9,540 After-Tax Income (dollars) $18,700 Savings (dollars) MPC MPS $ 23,640 13,860 19,180...
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...
10. Complete the accompanying table. Level of output and Income (GDP = DI) Consumption Saving APC...
10. Complete the accompanying table. Level of output and Income (GDP = DI) Consumption Saving APC APS MPC MPS $100 $105 -$5 1.05 125 $125 1.00 150 0.97 0.94 200 $145 $165 $185 $205 $225 $245 $265 225 |||||||| 0.925 0.91 0.90 0.89 0.88 250 275 300 (a) What is the break-even level of income? How is it possible for households to dissaye at very low income levels? (b) If the proportion of total income consumed decreases and the proportion...
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
6. Suppose a family's annual disposable income is $8000 of which it saves $2000. (a) What is their APC? (b) If income rises to $10,000 and they plan to save $2800, what are MPS and MPC? (c) Did the family's APC rise or fall with their increase in income? 7. Complete the following table assuming that (a) MPS = 1/5, (b) there is no government and all saving is personal saving. Level of output and income Consumption Saving $250 $260...
Keynesian Consumption Function (billions of dollars per year) Real disposable income Consumption Saving MPC MPS $100 200 300 400 500 $150 200 250 300 350 a.) Calculate the saving schedule. b. Determine the marginal propensities to consume (MPC) and save (MPS). c. Determine the break-even income. d.) What is the relationship between the MPC and the MPS? 3. Explain why the MPC and the MPS must always add up to one. 4. How do households "dissave" 5. Explain how each...
5. Graphing the consumption function from the MPC Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increases by $1, consumption increases by 50ยข. Suppose further that last year disposable income in the economy was $400 billion and consumption was $350 billion. On the following graph, use the blue line (circle symbol) to plot this economy's consumption function based on these data. Consumption Function CONSUMPTION (Billions of dollars) 0 800...
- - - 800 400 500 600 700 Real disposable income billion) Based on the scatter diagram in Figure 8-1, if real disposable income is $800 billion, the consumption spending would be approximately a. S540 billion Pob. $800 billion Ploc $650 billion. d. S420 billion.
The table below shows the after-tax income and consumption spending for a nation. a. Calculate the dollar amount of savings, the marginal propensity to consurfe (MPC), and the marginal propensity to save (MPS) for each level of income. Instructions: Enter your answers for savings as a whole number. Round your answers for MPC and MPS to two decimal places. After-Tax Income and Consumption Spending Consumption Spending (dollars) $9,540 After-Tax Income (dollars) $18,700 Savings (dollars) MPC MPS $ 23,640 13,860 19,180...
10. Complete the accompanying table. Level of output and Income (GDP = DI) Consumption Saving APC APS MPC MPS $100 $105 -$5 1.05 125 $125 1.00 150 0.97 0.94 200 $145 $165 $185 $205 $225 $245 $265 225 |||||||| 0.925 0.91 0.90 0.89 0.88 250 275 300 (a) What is the break-even level of income? How is it possible for households to dissaye at very low income levels? (b) If the proportion of total income consumed decreases and the proportion...
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