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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Similar questions

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.
Find out (i) if MPC is .75, what will be the MPS? (ii) if APS is .3, what will be the APC?
Average Propensities to Consume and to Save Disposable Income Consumption Saving APC APS P0 P2, 000 P2, 000 2,000 3,600 4,000 5,200 6,000 6,800 8,000 8,400 10,000 10,000 12,000 11,600 a. Solve for Savings, APC and APS
The equilibrium level of output for an economy is given as R2420m, with autonomous spending of R968m. If autonomous spending increases by R232m, the new equilibrium level of output will be __________ and the multiplier is _____. (a) R3000m; 2.5; (b) R928m; 4; (c) R580m; 2.5; (d) R3000m; 4.
In an economy MPC equals to 0.85 if investment is increased by $20 how more would be the increase in income
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
2
Suppose the current price level in the economy is 150 and real GDP is$5t. Net exports fall by$1t. What must be true? A the price level is now more than 150 B SRAS shifts to the left (C) the price level is now less than 150 (D) SRAS shifts to the right
in an imaginary economy, there is no foreign trade and no government activity. APC = MPC = 0.08. In equilibrium, consumption expenditure is Rs,20, 000 Million. (a) What is ihe level of invesiment expenditure? (b) What is the value of the multiplier (c) Suppose investment spending remains unchanged but both APC and MPC fall to 0.06, what is the new equilibrium level of national income?
answer quickly
At income level of 50 what would be the unintended, unplanned inventory investment? a) -20 b) -50 c) 20 d) 50 e) None of the above.

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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.