Figure 7.2 45° C,S V=200 In Figure 7.2, if income is $200, then: consumption is $100. saving is also $200. consumption is zero. saving is zero.
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- A Moving to another question will save this response. Question 12 Assume the following consumption schedule: C= 20 + 0.9 Y, where C is consumption and Yis disposable income. At $1,100 level of disposable income: (show your calculations) a. Find out the level of saving and consumption? b. How much are the APC and APS (to one decimal place)? ( c. If disposable income increased to $2,800 and saving is $345 now. What are MPC and MPS (to two decimal places)? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt A V 血 x² X2 深| T [区 田田 田E图|言()If Michelle's income is reduced to zero after she loses her job, her consumption will be and her saving will be O greater than zero; greater than zero O less than zero; greater than zero O greater than zero; less than zero O less than zero; less than zeroBased on the information presented below, what is the equation representing the saving for this economy? GDP (Y) $0 100 200 300 Cunsumption (C) $60 120 180 240 Oa. S = -60 + 0.6Y O b. S = 60+ 0.4Y O c. S = -40 +0.75Y O d. S= -60+ 0.4Y Saving (S) S-60 -20 20 60 Investment (1) $100 100 100 100
- Assume the following consumption schedule: C= 20 + 0.9 Y, where C is consumption and Y is disposable income. At $1,100 level of disposable income: (show your cacuators) a. Find out the level of saving and consumption? b. How much are the APC and APS (to one decimal place)? c. If dispr able income increased to $2,800 and saving is $345 now. What are MPC and MPŚ (to two decimal places)?The table given below shows the disposable income and consumption of a household. In the table below, saving: Table 9.1 Disposable Income ($) Consumption ($) 1,000 800 1,100 880 1,200 960 1,300 1,040 1,400 1,120 O is negative at a disposable income of $1,400. O is negative at a disposable income of $1,000. O decreases as disposable income increases. O remains constant as disposable income increases.Figure 7.2 45° c,S Y=200 In Figure 7.2, if income is $200, then: O consumption is also $200. saving is also $200. consumption is zero. the intercept of the consumption function is negative.
- assume you are given a $100 raise, and decide to save $20 of that money. also assume that if you make zero income in a year, you will still spend $7000. a.) what is your consumption function? b.) if you earn $20000 in a year how much will you spend? c.) will you be able to save while earning the above income?The table given below shows the disposable income and consumption of a household. In the table below, the level of saving at a disposable income of $1,200 is: Table 9.1 Disposable Income ($) Consumption (S) 1,000 800 1,100 880 1,200 960 1,300 1,040 1,400 1,120 a. $1,200 b. $950 c. $240 d. $80 e. $1,300Figure 2 C3 C2 C1 45° Y2 Y1 Aggregate income Aggregate saving
- 5. Explain the difference between investment as the term is used by most people and investment as defined by an economist in two paragraphs.If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to O save is 3/5. O consume is 1/2. O consume is 3/5. O consume is 2/5.Assume: Yd = $ 5000 billion b = .95 a = $ 520 billionA)What is consumption (C) ?B)What are savings (S) ? C)What is APC ?D)What is APS ?