QUESTION 12 If the MPC is 0.75, then the multiplier is: QUESTION 13 and autonomous consumption If the consumption f...
QUESTION 13 and autonomous If the consumption function is: C = 0.68(Disposable Income) + 400, the MPC- consumption -
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...
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
The multiplier process depicted in the following table is based on an MPC of 0.75. a Recompute the first four cycles using an MPC of 0.86 MPC = 0.75 MPC -0.86 Change in Spending Cumulative Increase Change in Spending Cumulative Increase Spending during Cycle in Spending during Cycle in Spending Cycles (billions per year) (billions per year) (billions per year (billions per year) 1 S100 00 S 100.00 $100.00 2 7500 175.00 3 56 25 231 25 42 18 273.44...
1.Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. Then the consumption function is given bya.C = 400 - 0.8Ydb.C = -400 + 0.2Ydc.C = 320 x Ydd.C = 400 + 0.8Yde.C = 400 + 0.2Yd2.Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. At what level of income is saving = 0?a.400b.500c.2000d.320e.12003.The saving functiona.. is an upward-sloping straight line with a vertical intercept of -C0 and a slope of...
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...
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 50¢. 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...
Economists refer to the simple relationship between consumption and disposable income as: autonomous consumption. the marginal propensity to consume. the absolute disposable income hypothesis. disposable income. the consumption function.
Use the table below to answer the question. Disposable Income $10.000 $20,000 $30,000 $40.000 Consumption $12,000 $20.000 $28,000 $36.000 The marginal propensity to save (MPS) is equal to and the marginal propensity to consume (MPC) is equal to 0.2:0.8 O 0.25:0.75 O 0.75:0.25 O 0.8:0.2 Use the table below to answer the question. Disposable Income $10,000 $20,000 $30,000 $40,000 Consumption $12,000 $20,000 $28,000 $36,000 Autonomous consumptly is equal to: $1,000 O $4,000. O $10,000. O $12,000.
The following data for an imaginary economy. MPC = b = 0.8 , autonomous consumption = $50 M , Investment = $100 M , Government spending = $80 M, Transfer payments = $40 M, Taxes = $12 M Using this data calculate: a. The level of national income b. The level of Saving