ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
expand_more
expand_more
format_list_bulleted
Question
The disposable income is 10000 and the level of consumption is 8000. Calculate average propensity to consume.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- 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.arrow_forwardThe table below provides Income and consumption Data in billions of dollars. Answer questions below based on it.Disposable Consumption SavingsIncome100 80 --------200 150 --------- What is the level of consumption when income is $300 billion? Group of answer choices $200 billion $240 billion $210 billion $60 billionarrow_forwardInduced 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 incomearrow_forward
- MPC in an economy is 0.8. If investment is increased by $5 million, how much would be increas in income.arrow_forwardConsumption ($) Disposable Income ($) 1,200 3,200 2,100 4,000 3,000 4,800 Calculate the Marginal Propensity to Consume (MPC). Group of answer choices 1.125 0.6 0.3 0.9arrow_forwardThe 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 investedarrow_forward
- At the point where the consumption schedule intersects the 45-degree line: saving equals income. the MPC equals 1. saving is zero. the APC is zero.arrow_forwardThe country has investment multipier 2. Calculate the marginal propensity to save.arrow_forwardThe value of consumption is $1000 and income is $2200 Calculate the value of average propensity to consumearrow_forward
- If in an economy MPC is 0.8 and investment increase by $1000 million, calculate total increase in income.arrow_forwardThe table below shows disposable income and desired consumption for a hypothetical economy. Disposable income ($) 0 100 200 Select one: The marginal propensity to consume out of an increase in disposable income from $0 to $100 is. a. 0.75 b. 0.25 OC. 0.80 Consumption ($) d. 0.35 100 175 250 cross out cross out cross out cross outarrow_forwardIn an economy investment multipier increase by 120 billion. The value of multiplier is 4. Calculate MPC.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education