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Given: C = 100 + 0.75Yd; I = 120 - 0.1Y – 200i; G= 40; T = 40
What is the marginal propensity to consume?
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- If C = 12 + 4/5Y, I = 20, what is the values the marginal propensity to save? What is equilibrium level of Y? Show that in equilibrium S = I.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 SavingCalculate the value of income if consumption is $440 and the average propensity to consume Is 0.88
- The government raises taxes by $100 billion. If the marginal propensity to consume is 0.8 What happens to the following? Do they rise or fall? By what amounts? a)InvestmentThe marginal propensity to consume is 0.8. Find the investment multipier.Equation for consumption is C=40/(0.8Y) where Y= yearly income = $400. The marginal propensity to consume is _______?
- If you make $800 from a lucrative side business selling snack food in dorms, how much would you save if your marginal propensity to consume is 0.75? (do not include the dollar sign in your answer).For the consumption function C= 10 + - (a) find the marginal propensity to consume when /= 16; (b) find the marginal propensity to save with / = 16.What is ? 1-)Unemployment 2-)Population 3-)Marginal Propensity To Consume
- If the marginal propensity to consume is 0.6 then the marginal propensity to save must be 0.4. 1. 1.4. 0.6.The marginal propensity to consume is a)the average amount of income that is consumed or spent b)the ratio of consumption to income c)the ratio of the change in consumption to a change in income d)the ratio of income to consumptionThe marginal propensity to consume for this economy is …………. if income rises from $9000 to $10000 and consumption is rises from $750 to $1500 0.650. 0.750. 0.650 or 0.664, depending on whether income is $10,000 or $11,000. 0.800.
