Suppose the marginal propensity to consume out of disposable income for an economy is 0.15. Interpret this number.
Suppose the marginal propensity to consume out of disposable income for an economy is 0.15. Interpret this number.
Suppose that an economy has an income of $20,000 with a marginal propensity to consume of 0.5. What is the multiplier? Give your answer to two decimals.
The table shows disposable income and saving in an economy. Saving Calculate the marginal propensity to consume. >>> Answer to 1 decimal place. Disposable income (trillions of dollars) 0 10 20 30 40 50 The marginal propensity to consume is - 15 - 13 - 11 -9 -7 -5 If wealth increases by $10 trillion, the consumption function O A. shifts upward OB. shifts downward O C. does not change
25. Suppose the marginal propensity to consume is 0.63, the marginal propensity to import equals 0.08, and personal income taxes amount to 9 percent of GDP. The spending multiplier for this economy is equal to _____. a. 0.54 b. 0.80 c. 1.25 d. 1.41 e. 1.85
6. The marginal propensity to consume (mpc) is the: A, amount by which disposable income increases when consumption increases by $1 B. amount by which consumption increases when disposable income increases by $1 percentage by which consumption increases when disposable income increases by 1% D, percentage by which disposable income increases when consumption increases by 1% 7. Data on output and planned aggregate expenditure in Macroland are given below. 2,000 3,000 4,000 5,000 6,000 2,300 3,200 4,100 5,000 5,900 Based...
Based on the data below, calculate the Average Propensity to Consume at a disposable income of $500 Aggregate Disposable Income Consumption $ billions) $ billions) so $80 $100 $200 $300 $400 $500 $160 $220 $300 $380 $460 0.80 O$80 0.08 0.92 2.5 pts D Question 31 If disposable income increases from $450 to $470 bi propensity to save (MPS)? llion and savings increases from $15 to $20 billion, what is the marginal 0.25 0.02
10.) An economy has a marginal propensity to consume and Y* , income-expenditure equilibrium GDP, equals $500 billion. Given an autonomous increase in plannėd investment of $10 billion, show the rounds of increased spending that take place by completing the accompanying table. The first and second rows are filled in for you. In the first row the increase of planned investment spending of $10 billion raises real GDP and YD by $10 billion, leading to an increase in consumer spending...
When disposable income is increased from $0 to $1,000 to $2,000, the marginal propensity to consume does what? my answers are total consumption increases by $1,000; MPC remains constant; MPC increases from0.6 to 0.7; MPC decreases from 0.8 to 0.7 or MPC decreases from 0.7 to o.6 thanks
Suppose that the marginal propensity to consume is dC dy = 0.7 − e−2y (in billions of dollars) and that consumption is $5.7 billion when disposable income is $0. Find the national consumption function.
Suppose that the marginal propensity to consume is dC dy = 0.8 -e-0.27 (in billions of dollars) and that consumption is $8.5 billion when disposable income is $0. Find the national consumption function. C(y) =
Allison disposable income is $90,000, her autonomous consumption is $15,000 and her Marginal Propensity to Consume is 0.80, how much money is Allison saving? Select one: a. She is saving $3,000 b. She is saving $7,000 c. She is saving $10,000 d. She is saving $12,000 e. She is saving $15,000