Answer the question on the basis of the following consumption schedule: C = 50 + .75Y. The level of disposable income is $400. What is the MPC of this economy?
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Answer the question on the basis of the following consumption schedule: C = 50 + .75Y. The level of disposable income is $400.
What is the MPC of this economy?
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- How is it possible for consumption expenditure to be positive even when disposable income is zero?© Macmillan Learning The graph represents consumption (C) as a function of disposable income (DI). Assume the consumption function is linear. What is the value of the marginal propensity to consume (MPC)? Round the value of the MPC to two decimal places. Consumption $1050 900 MPC = 750 600 450 300 150 C=DI C 0 $150 300 450 600 750 900 1050 Disposable incomeIs the following statement TRUE or FALSE? Please provide reason for the answer. The positive relationship between consumption expenditure and disposable income can be shown by a positive slope of consumption curve
- The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, where k = 3, c = 0.8 What is the equilibrium level of GDP? What is the multiplier?Consider a hypothetical economy described by the following information: C = 500 = 100 G = 200 T = 80 mpc = :0.6 Task 1. Answer the following given the information above. A. Set up the consumption function of this economy. Simplify your answer. B. Compute for the equilibrium income. C. Compute for the value of the multiplier. D. Compute for the change in equilibrium income if the government decreased its expenditure to 100. E. Derive the savings function of this economy. F. Compute for the value of savings suppose the economy is in equilibrium.How is it possible for consumption expenditure to be positive even when disposable income is zero?Why is it necessary for there to be some consumption when disposable income is zero, and what is this called?
- Which of the following is a true statement about the multiplier? The multiplier rises as the MPC rises. The smaller the MPC, the larger the multiplier. The multiplier is a value between zero and one. The multiplier effect does not occur when autonomous expenditure decreases.Study the scenario and complete the question(s) that follow(s): Silesia You are provided with the following information about an imaginary economy called Silesia. Use the information provided in the table to answer the questions below. Government expenditure 400 Exports 250 Autonomous imports 50 Autonomous consumption 150 Investment Expenditure 300 Full-employment output 2040 Marginal propensity to consume 0.75 Marginal propensity to import 0.15 Таx rate 0.25 5.1 Derive and calculate the consumption function for the data provided. Show all formulas and calculations used. 5.2 Calculate autonomous spending. Show all formulas and calculations used. 5.3 Calculate the multiplier. Show all formulas and calculations used. Round off your final answer to 1 decimal. 5.4 Calculate the equilibrium level of income, using the values calculated in 5.2 and 5.3 above. Show all formulas and calculations used. 5.5 Calculate the government surplus or deficit at the equilibrium level of income. Show all…I consumed all my income at every level of income.Draw my consumption and saving function.What are my MPC and MPS? Explain why it must always be true that MPC+MPS equal to 1?
- I'm doing economics homework and I'm being asked to find the multiplier when the MPS is 0.12 and MPC is 0.88. I'm trying to follow the formula and not sure where I'm getting lost.i need the answer quicklyWhat can we predict about the effect on consumption of an increase in government spending? A) Consumption will increase by an amount equal to the MPC times the change in real GDP. B) Consumption will increase by an amount equal to the MPC times the change in government spending. C) Consumption will increase by the amount of the government spending. D) Consumption will not rise as government spending rise
