Disposable Income Y, (S, billions)Consumption C (S, billions)100100175200250300325400400500475The economy's marginal propensity to save isOA. 0.25.OB. $- 25 billion.OC. -0.083.OD. 0.75.

Answered: Disposable Income Y, (S, billions)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. Benjamin's income increases from $40,000 to $44,000. His consumption increases from $35,000 to $36,000. What is Benjamin's Marginal Propensity to Save? A..19 B..75 C. .81 D. 1.25
Given the data in the table below, calculate the marginal propensity to save. Consumption Personal Income Personal Taxes $750 $350 $225 $540 $1,500 $450 Select one: а. О.81 O b. I'll take 2 Points О с. 0.19 O d. 0.36 O e. 0.75 O f. Not enough data to solve g. 0.25 O h. 0.64
DI, C and S Given the following income, spending, and savings data, please answer the following questions: Savings (S) Disposable Income (DI) 0 $ $ 50000 $100000 $150000 d. Consumption (C) $ 40000 $ 70000 $100000 $130000 a. Solve for savings at each level of disposable income (DI) and place the values in the blanks above. b. Solve for the marginal propensity to consume (MPC) between each disposable income level. c. Although you were not asked to do so in this example, whenever solving for the APC, you should find that the APC decreases as the DI rises. Why would the APC decrease when the consumption values continue to increase as disposable income increases? State the value for the break level of income.
19. If the actual level of income is 18, what would be the resulting unplanned inventory investment? a) -8 b) -6 c) -4 d) Zero e) -2
Use the following table. Disposable Income Desired Consumption 10.0 30 70 29.5 55.5 140 101.0 The marginal propensity to save is equal to ..... O A. 0.45. В. 0.35. OC. 0.65. D. 0.72. E. 0.25.
Full Employment of National Income 700 1. The Marginal Propensity to Consume (MPC) is: A. 0.50 B. 0.60 |С.0.70 D. 0.75 2. The Multiplier is: A. 2.5 В.3 C. 4 D. 5 3. The Equilibrium level of National Income equals: A. 700 В. 740 C. 780 D. 600 4. The size of the Deflationary or Inflationary is: A. +15 B. -20 C. +40 D.-30 5. If investment spending increases by (6), the Equilibrium level of national income will increase by: A. 10 B. 15 C. 20 D. 24 A Moving to another question will save this response
Income choices: a. What will a 2% increase in tax rates do to disposable income? b. If Eduardo’s disposable income increases from $1,200 to $1,700 and his level of saving increases from minus $100 to a plus $100, his marginal propensity to save is:
A high marginal propensity to save means ? (a) lower multiplier (b). Higher is the investment spending (c). Higher is the equilibrium income (d). A higher level of aggregate demand (e). A high level of exports
- If personal income taxes are increased, disposable income and consumption increase. stay the same. decrease. change in an unpredictable direction
Question 1 Given the following consumption function: C= 100 + 0.6Y 1. What is the saving equation? 2. Determine the Breakeven for the economy.
The multiplier 15) If the consumption function is C = $800 billion + 0.8Y (a) What is the MPC? (b) How large is autonomous C? (c) How much do consumers spend with incomes of $4 trillion? (d) How much do they save?
Assuming there is no government or foreign sector, [1 / 1- MPC] represents a. the consumption function.b. the saving function.c. the multiplier.d. break even income

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Disposable Income Y, (S, billions) Consumption C (S, billions) 100 100 175 200 250 300 325 400 400 500 475 The economy's marginal propensity to save is OA. 0.25. OB. $- 25 billion. OC. -0.083. OD. 0.75.