Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 9, Problem 10E
To determine
(a)
To write:
Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.
To determine
(b)
To write:
Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.
To determine
(c)
To write:
Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.
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The table below provides Income and consumption Data in billions of dollars. Answer question below based on it.Disposable Consumption SavingsIncome100 80 --------200 150 ---------
Using information from question 21, calculate the marginal propensity to consume for the economy?
a. 0.8
b. 0.2
c. 0.3
d. 0.7
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