Homework Answers
Option C
- MPC refers to the change in the consumption based on the changes in the income.
- It specifies the additional income used up for consumption expenditure.
- The MPC measures the slope of the consumption line. As this line is straight line,its slope is constant at various levels of income and as MPC measures the slope of the consumption line, it is also constant over the entire range of income.
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If the consumption schedule is a straight line, it can be concluded that the Multiple Choice...
What is the slope of the consumption schedule or consumption line for a given economy? Multiple...
What is the slope of the consumption schedule or consumption line for a given economy? Multiple Choice APC O APS 1-MPC 1-MPS
Aggregate Expenditures 8 01:53:18 eBook B GDP Refer to the diagram. If the full-employment level of...
Aggregate Expenditures 8 01:53:18 eBook B GDP Refer to the diagram. If the full-employment level of GDP is Band aggregate expenditures are at AE3, the Multiple Choice inflationary expenditure gap is BC. recessionary expenditure gap is BC Loo oo recessionary expenditure gap is ed. * 0 inflationary expenditure gap is ed. Consumption (8 01:51:33 0 Disposable Income eBook Suppose an economy's consumption schedule shifts from a to C2, as shown in the diagram. We can say that its Multiple Choice...
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...
Which of the following statements about straight-line depreciation is correct? Multiple Choice The straight line method...
Which of the following statements about straight-line depreciation is correct? Multiple Choice The straight line method of depreciation results in a straight-line increase of depreciation expense over the life of an asset. Straight-line depreciation is an approved method to allocate the cost of an asset to expense and it serves as a measure of the physical decline in the asset. When the straight-line method is used to compute depreciation, an asset's carrying value remains constant over the life of the...
1. According to Keynesian theory, the primary determinant of the level of consumption and saving in...
1. According to Keynesian theory, the primary determinant of the level of consumption and saving in the economy is the: a. level of investment. c. level of prices. b. level of income. d. interest rate. 2. If a family's MPC is. 7, it is: a. spending 70 percent of its income on consumer goods. b. necessarily dissaving. c. spending seventenths of any increment to its income d. operating at the breakeven point. The size of the MPC is assumed to...
The table below depicts the consumption schedule for an economy. Assume there are no taxes in...
The table below depicts the consumption schedule for an economy. Assume there are no taxes in this economy Disposable Income and Consumption Disposable Inc Consumption (dollars) (dollars) $0 $25,000 10,000 20,000 30,000 40.000 40,000 45,000 50,000 60.000 References Instructions: Use the tool provided 'C' to plot the consumption line point by point points total). Use the tool Equilibrium' to graph where consumption equals disposable income, plot the equilibrium line point by point use each disposable income entry in the table...
1. Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. Then the consumption function is given by a. C = 400 - 0.8Yd b. C = -400 + 0.2Yd c. C = 320 x Yd d. C = 400 + 0.8Yd e. C = 400 + 0.2Yd 2. Suppose th
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...
ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption...
ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption is:C = 100+ 0.8Y Assume further that planned investment lo and net exports Xn are independent of the level of real GDP and constant at lg = 60 and Xn = 10. Government spending (G) is equal to $0. Recall also that, in equilibrium, the real output produced (y) is equal to aggregate expenditures: Y=C+Ig+G+Xn nstructions: Round your answers to the nearest whole number. a. What is the...
2 multiple choice questions According to Eq. (4.9), a straight line graph is expected when Inlid(t)/id(0)]...
2 multiple choice questions
According to Eq. (4.9), a straight line graph is expected when Inlid(t)/id(0)] (on y-axis) is plotted against t (on x-axis). The unit of the slope of this plot will be A As B In[As2 C H 2
The least squares regression line is the line: Multiple Choice which is determined by use of...
The least squares regression line is the line: Multiple Choice which is determined by use of a function of the distance between the observed Y ’s and the predicted Y’s. which has the smallest sum of the squared residuals of any line through the data values. for which the sum of the residuals about the line is zero. which has all of the above properties. which has none of the above properties.
What is the slope of the consumption schedule or consumption line for a given economy? Multiple Choice APC O APS 1-MPC 1-MPS
Aggregate Expenditures 8 01:53:18 eBook B GDP Refer to the diagram. If the full-employment level of GDP is Band aggregate expenditures are at AE3, the Multiple Choice inflationary expenditure gap is BC. recessionary expenditure gap is BC Loo oo recessionary expenditure gap is ed. * 0 inflationary expenditure gap is ed. Consumption (8 01:51:33 0 Disposable Income eBook Suppose an economy's consumption schedule shifts from a to C2, as shown in the diagram. We can say that its Multiple Choice...
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...
1. According to Keynesian theory, the primary determinant of the level of consumption and saving in the economy is the: a. level of investment. c. level of prices. b. level of income. d. interest rate. 2. If a family's MPC is. 7, it is: a. spending 70 percent of its income on consumer goods. b. necessarily dissaving. c. spending seventenths of any increment to its income d. operating at the breakeven point. The size of the MPC is assumed to...
The table below depicts the consumption schedule for an economy. Assume there are no taxes in this economy Disposable Income and Consumption Disposable Inc Consumption (dollars) (dollars) $0 $25,000 10,000 20,000 30,000 40.000 40,000 45,000 50,000 60.000 References Instructions: Use the tool provided 'C' to plot the consumption line point by point points total). Use the tool Equilibrium' to graph where consumption equals disposable income, plot the equilibrium line point by point use each disposable income entry in the table...
ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption is:C = 100+ 0.8Y Assume further that planned investment lo and net exports Xn are independent of the level of real GDP and constant at lg = 60 and Xn = 10. Government spending (G) is equal to $0. Recall also that, in equilibrium, the real output produced (y) is equal to aggregate expenditures: Y=C+Ig+G+Xn nstructions: Round your answers to the nearest whole number. a. What is the...
2 multiple choice questions
According to Eq. (4.9), a straight line graph is expected when Inlid(t)/id(0)] (on y-axis) is plotted against t (on x-axis). The unit of the slope of this plot will be A As B In[As2 C H 2
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