The consumption function is relationship between consumption and: Select one: a. planned aggregate expenditure. b. total spending. c. investment. d. disposable income.
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The consumption function is relationship between consumption and:
Select one:
a. planned aggregate expenditure.
b. total spending.
c. investment.
d. disposable income.
Step by step
Solved in 3 steps
- 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.The Average Propensity to Consume is: A. the percentage of disposable income that is consumed B. the percentage of disposable income that is saved C. the percentage of disposable income that is spent D. the percentage of disposable income that is investedInduced Consumption is: A. that part of consumption that varies with the level of GDP B. that part of consumption that varies with nondurable goods C. that part of consumption that varies with durable goods D. that part of consumption that varies with the level of disposable income
- a) With the aid of a consumption function, highlight the main determinants of consumption.Classify each of the following items as a final good or an intermediate good, and identify whether it is a component of consumption expenditure, investment, or government expenditure on goods and services: Item 1. Packing boxes bought by Amazon.com. Item 2. Starbuck's grande mocha frappuccino bought by a student. Item 3. A new limousine for the president. Item 4. New airplanes bought by United Airlines. Item 1 is and item 2 is A. an intermediate good; a final good that is consumption expenditure B. a final good that is consumption expenditure; a final good that is consumption expenditure O C. a final good that is consumption expenditure; a final good that is investment D. an intermediate good; a final good that is investment Item 3 is and item 4 is O A. an intermediate good; an intermediate good B. a final good that is government expenditure; a final good that is investment O C. an intermediate good; a final good that is investment O D. a final good that is government expenditure; an…In the aggregate expenditure model the investment curve is A. Upward sloping B. Downward sloping C. a horizontal line D. a vertical line
- Consider the circular flow of expenditure and income in the Canadian economy. Which of the following is an injection into the circular flow? Select one: a. You make an online purchase from a U.S. retailer. b. Loblaws pays corporate income tax to the federal government. c. Bombardier exports subway cars to Mexico. d. Bombardier imports machine parts from Germany. e. You put $500 into your TFSA (tax-free savings account).I need examples for the determinants of the consumption element of Aggregate Demand. (Examples are crucial please that’s all I need!) a. Consumption spending b. Disposable income c. WealthExplain how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal:a. A large increase in the value of real estate, including private houses.
- The following are the components of aggregate demand EXCEPT, A) government spending. B) consumption of households. C) investment by firms. D) household saving.Explain how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal:a. A large increase in the value of real estate, including private houses.b. A decline in the real interest rate.c. A sharp, sustained decline in stock prices.d. An increase in the rate of population growth.e. The development of a cheaper method of manufacturing computer chips.f. A sizable increase in the retirement age for collecting Social Security benefits.g. An increase in the Federal personal income tax.The consumption expenditure and output of the country is 500 billion and 100 billion respectively. Calculate the average propensity to consume.
