Your average propensity to consume is the percentage of each dollar of income, on the average, that is spent for current needs rather than savings. True False
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- If an individual saves $10,000 when his disposable income is $80,000. How much money does he consumes.Congress passed the CARES Act to provide an economic safety net during the Covid-19 pandemic shutdown. The CARES Act included stimulus checks that were sent to some households. Households with individuals making up to $75,000 received a $1,200 check and households with married couples making up to $150,000 received a $2,400 check. Think about how the savings rate varies with household income and the utility of savings versus spending when answering the questions below. Does the particular income limit imposed make sense? Should it be higher, lower, or should there be no limit. Provide an explanation for your answer.Congress passed the CARES Act to provide an economic safety net during the Covid-19 pandemic shutdown. The CARES Act included stimulus checks that were sent to some households. Households with individuals making up to $75,000 received a $1,200 check and households with married couples making up to $150,000 received a $2,400 check. Think about how the savings rate varies with household income and the utility of savings versus spending when answering the questions below. Explain why Congress only sent stimulus checks to households up to a certain income level.
- Congress passed the CARES Act to provide an economic safety net during the Covid-19 pandemic shutdown. The CARES Act included stimulus checks that were sent to some households. Households with individuals making up to $75,000 received a $1,200 check and households with married couples making up to $150,000 received a $2,400 check. Think about how the savings rate varies with household income and the utility of savings versus spending when answering the questions below. 1. Explain why Congress only sent stimulus checks to households up to a certain income level. 2. Does this program make sense given the fact that there is a severe economic downturn? Why or Why not?Find the level of savings when consumption is $610 and the income is $111What is it mean by full price and income when discussing household consumption?