(a) To write: Disposable income is $500, and consumption is $450. The value of savings.

Question

Assume the following consumption schedule: C= 20 + 0.9 Y, where C is consumption and Y is disposable income. At $1,100 level of disposable income: (show your cacuators) a. Find out the level of saving and consumption? b. How much are the APC and APS (to one decimal place)? c. If dispr able income increased to $2,800 and saving is $345 now. What are MPC and MPŚ (to two decimal places)?

Answer 1

Question

Chapter 9, Problem 9E

To determine

(a)

To write:

Disposable income is $500, and consumption is $450. The value of savings.

To determine

(b)

To write:

Disposable income is $1,200 and APS is 0.9. The value of savings.

To determine

(c)

To write:

MPC = 0.9, disposable income rises from $800 to $900. Saving was originally at $120 when income was $800. The value of savings now.

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Assume the following consumption schedule: C= 20 + 0.9 Y, where C is consumption and Y is disposable income. At $1,100 level of disposable income: (show your cacuators) a. Find out the level of saving and consumption? b. How much are the APC and APS (to one decimal place)? c. If dispr able income increased to $2,800 and saving is $345 now. What are MPC and MPŚ (to two decimal places)?

The table given below shows the disposable income and consumption of a household. In the table below, the level of saving at a disposable income of $1,200 is: Table 9.1 Disposable Income ($) Consumption (S) 1,000 800 1,100 880 1,200 960 1,300 1,040 1,400 1,120 a. $1,200 b. $950 c. $240 d. $80 e. $1,300

Saving = a. disposable income minus taxes b. income minus taxes c. 1 – MPC d. disposable income minus consumption

Answer 2

Question

Chapter 9, Problem 9E

To determine

(a)

To write:

Disposable income is $500, and consumption is $450. The value of savings.

To determine

(b)

To write:

Disposable income is $1,200 and APS is 0.9. The value of savings.

To determine

(c)

To write:

MPC = 0.9, disposable income rises from $800 to $900. Saving was originally at $120 when income was $800. The value of savings now.

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Answer 3

Question

Chapter 9, Problem 9E

To determine

(a)

To write:

Disposable income is $500, and consumption is $450. The value of savings.

To determine

(b)

To write:

Disposable income is $1,200 and APS is 0.9. The value of savings.

To determine

(c)

To write:

MPC = 0.9, disposable income rises from $800 to $900. Saving was originally at $120 when income was $800. The value of savings now.

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Answer 4

Question

Chapter 9, Problem 9E

To determine

(a)

To write:

Disposable income is $500, and consumption is $450. The value of savings.

To determine

(b)

To write:

Disposable income is $1,200 and APS is 0.9. The value of savings.

To determine

(c)

To write:

MPC = 0.9, disposable income rises from $800 to $900. Saving was originally at $120 when income was $800. The value of savings now.

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Answer 5

Chapter 9, Problem 9E

To determine

(a)

To write:

Disposable income is $500, and consumption is $450. The value of savings.

To determine

(b)

To write:

Disposable income is $1,200 and APS is 0.9. The value of savings.

To determine

(c)

To write:

MPC = 0.9, disposable income rises from $800 to $900. Saving was originally at $120 when income was $800. The value of savings now.

Answer 6

Chapter 9, Problem 9E

To determine

(a)

To write:

Disposable income is $500, and consumption is $450. The value of savings.

Answer 7

Chapter 9, Problem 9E

To determine

(a)

To write:

Disposable income is $500, and consumption is $450. The value of savings.

Answer 8

To determine

(b)

To write:

Disposable income is $1,200 and APS is 0.9. The value of savings.

Answer 9

To determine

(b)

To write:

Disposable income is $1,200 and APS is 0.9. The value of savings.

Answer 10

To determine

(c)

To write:

MPC = 0.9, disposable income rises from $800 to $900. Saving was originally at $120 when income was $800. The value of savings now.

Answer 11

To determine

(c)

To write:

MPC = 0.9, disposable income rises from $800 to $900. Saving was originally at $120 when income was $800. The value of savings now.

Answer 12

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Answer 23

Ch. 9 - Prob. 1E Ch. 9 - Prob. 2E Ch. 9 - Prob. 3E Ch. 9 - Prob. 4E Ch. 9 - Prob. 5E Ch. 9 - Prob. 6E Ch. 9 - Prob. 7E Ch. 9 - Prob. 8E Ch. 9 - Prob. 9E Ch. 9 - Prob. 10E

(a) To write: Disposable income is $500, and consumption is $450. The value of savings.

Solution Summary: The author explains that disposable income is available for consumption and saving. Consumption function is the relationship between income level and consumption.

(a)

To write:

Disposable income is $500, and consumption is $450. The value of savings.

(b)

To write:

Disposable income is $1,200 and APS is 0.9. The value of savings.

(c)

To write:

MPC = 0.9, disposable income rises from $800 to $900. Saving was originally at $120 when income was $800. The value of savings now.

Chapter 9 Solutions

(a) To write: Disposable income is $500, and consumption is $450. The value of savings.

Solution Summary: The author explains that disposable income is available for consumption and saving. Consumption function is the relationship between income level and consumption.

(a) To write: Disposable income is $500, and consumption is $450. The value of savings.

(b) To write: Disposable income is $1,200 and APS is 0.9. The value of savings.

(c) To write: MPC = 0.9, disposable income rises from $800 to $900. Saving was originally at $120 when income was $800. The value of savings now.

Chapter 9 Solutions

(a)

To write:

Disposable income is $500, and consumption is $450. The value of savings.

(b)

To write:

Disposable income is $1,200 and APS is 0.9. The value of savings.

(c)

To write:

MPC = 0.9, disposable income rises from $800 to $900. Saving was originally at $120 when income was $800. The value of savings now.