When disposable income equals $800 billion, consumption expenditure equals $600 billion and when disposable income equals $1,000 billion, consumption expenditure equals $760 billion. What is the marginal propensity to consume? 0.20 0.80 0.64 0.25
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When disposable income equals $800 billion, consumption expenditure equals $600 billion and when disposable income equals $1,000 billion, consumption expenditure equals $760 billion. What is the marginal propensity to consume?
- 0.20
- 0.80
- 0.64
- 0.25
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- As the MPC rises, the multiplier falls does not change increases falls by .05 for each .01 increase in the MPCThe value of Marginal propensity to consume is double the value of Marginal propensity to save. Find the value of multiplierThe marginal propensity to consume is 0.5. calculate the value of multiplier and marginal propensity to save.
- Investment increases by $200 million and the value of MPC is 0.75. What would be the total increase in spending?The disposable income is 10000 and the level of consumption is 8000. Calculate average propensity to consume.Assume the base model. If the spending multiplier is 10, then the tax multiplier is 11 10 -9 -8 another value
- The government raises taxes by Rs. 100 billion. If the marginal propensity to consumeis 0.6, what happens to the following – do they rise or fall? By what amounts? a) Public Savingb) Private Savingc) National SavingThe accompanying table presents hypothetical data on aggregate consumption expenditure and disposable income in millions of dollars over five years. Disposable income Consumption expenditure Year (in millions) (in millions) 2013 200 175 2014 225 193.75 2015 280 235 2016 325 268.75 2017 300 250 a. What is the marginal propensity to consume (MPC)? МРC: b. What is the marginal propensity to save (MPS)? MPS:Suppose two successive levels of disposable personal income are $16 and $21 billion, respectively, and the change in consumption spending between these two levels of disposable personal income is $2 billion, then the MPC will be equal to? 0.12 0.8 0.7 0.4 0.04