The aggregate expenditure function in a simple macroeconomic model with a close economy and no government is the sum of a. Wished for consumption and wished for investment b. Saving as well as the intended investment c. Expenditure and disposable income
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The aggregate expenditure function in a simple
a. Wished for consumption and wished for investment
b. Saving as well as the intended investment
c. Expenditure and disposable income
d.
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- During recessions which type of spending falls?a. consumption and investmentb. investment but not consumptionc. consumption but not investmentd. neither consumption nor investmentDisposable income is the amount a household has A after subtracting autonomous spending. B after subtracting taxes and transfer payments to income. C sometimes called discretionary spending. D available for consumption spending and saving.If in an economy MPC is 0.8 and investment increase by $1000 billion. Calculate the increase in income.
- If in an economy MPC is 0.8 and investment increase by $1000 million, calculate total increase in income.Which components of Aggregate Expenditure change as a result of a change in real GDP? Question 3Answer a. consumption, investment, and exports b. consumption and investment c. consumption, investment, and government expenditures d. consumption and governments e. consumption and imports1.3 A Country has following data Consumption Function = 90+0.75Y, Investment = 20 Billion Determine: 1. National Income Equilibrium 2. National Consumption and Saving Consumption in Equilibirum 3. Graph it!
- ingr Income (GDP = DI) $480 520 560 600 640 680 720 760 800 Consumption 512 536 560 504 608 632 b. If the MPC is 0.75? 656 680 704 Saving $-32 -16 0 16 32 48 64 80 96 What is the value of the marginal propensity to consume? APC Instructions: Round your answer to the nearest whole number. Change in GDP = billion. 1.067 0.990 0.880 APS -0.067 0.027 a. By how much will GDP change if firms increase their investment by $9 billion and the MPC is 0.9? Instructions: Round your answer to the nearest whole number. Change in GDP- 9 billion. 0.120I'm doing economics homework and I'm having trouble findong the MPC. In this particular problem, consumers' disposable income increased by $525 billion and their spending increased by $283 billion.Assume a simple closed economy without exports and imports. autonomous consumption expenditure is 50 billion. The marginal propensity to consume is 0.6 desired investement is 10 billion and govt pirchase is 20 billion. Write a mathematical equation expressing Savings as a function os disposable income ?
- The multiplier is the ratio of the change in ________ to a change in ________. Select one: a. the level of saving; the level of consumption b. autonomous consumption; induced consumption c. the MPC; the MPS d. the equilibrium level of output; some autonomous variableWhich of the following statements is most accurate? a.Most of the variation in consumption spending can be explained by changes in debt b. There is no single factor that explains much of the variation in consumption spending c. Most of the variation in consumption spending can be explained by changes in the interest rate. d. Most of the variation in consumption spending can be explained by changes in wealth e. most of the variation in consumption spending can be explained by changes in disposable income.The change in consumption divided by the change in disposable income is equal to A. household saving. B. the slope of the consumption function. C. real GDP. D. aggregate expenditure.