13 In this consumption function C= C0 + C1*Yd equation; C1*Yd Known as Select one: a. Disposable income b. Autonomous consumption c. Marginal propensity to consume d. Induced consumption
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- Quèstion 20 $60 A $40 + $20 + $50 100 150 200 Disposable Income(Y) -20 Refer to the diagram. The average propensity to consume: O A. cannot be detemined from the information given. O B. is equal to the average propensity to save. OC, is greater than 1 at all levels of disposable income below $100. O D. is greater than 1 at all levels of disposable income above $100. Saving (S)500 1,000 Aggregate output, Y (billions of dollars) Figure 8.1 Refer to Figure 8.1. An increase in the MPC Select one: Oa shifts the saving function downward. Ob.makes the caving function fatte Oashifts the consumption function upard. .2.makes the consumption function fatter) billions of dollars)Consumption C₂ B Refer to Figure 10-3. Marginal propensity to consume is equal to a. CoF divided by AF. O b. CoA divided by AF. OC. AF divided by CoA. Od. AF divided by CoF. Figure 10-3 Yds [VO₂ Disposable Income Yd.
- Quèstion 27 $60 $40+ $20 十 $50 100 150 200 Disposable Income(Y) -20 Refer to the diagram. The average propensity to consume: O A. is equal to the average propensity to save. O B. cannot be determined from the information given. OC is greater than 1 at all levels of disposable income above $100. O D. is greater than 1 at all levels of disposable income below $100. Saving (S)5. Explain the concept of autonomous consumption.hich theory of consumption best explains the consumption behavior of consumers of our economy? Question No: 02 [Marks: 10] If the State Bank started printing large quantities of Pakistani Rupees (Rs), what would happen to the number of Pakistani Rupees a dollar could buy? Why? Question No: 03 [Marks: 10] Deseribe the difference batuuean foreian diract investmet and foraion nortfolie invastment Who is mora likelu to
- 9- What could be the reason of shifting of consumption line upward from 1 to 3 as it is plotted in the Graph? C'= C+c Y. C,(Consumption) C= Co + c Yd (initial stage) 2 3 Cl"= C + c Y4 Sa Co Yd (Income) a) An increase in marginal propensity to consume b) An increase in autonomous consumption c) A decrease in autonomous consumption d) A decrease in Income e) An increase in IncomeAssume in a simple economy that thc level of saving is -500 when aggregate ourput equals zero and that the margina! propensity to save is 0.2. Derive the saving function and the consumption function, and draw a graph showing these func- tions. At what level of aggregate ouiput does the consumption curve cruss the 45° line? Explain your answer and show this un the graph.An increase in disposable income shifts Select one: a. both the consumption and savings functions downward. b. the consumption function upward and leads to a movement along the savings function. O c. neither the consumption function or the savings function because it leads to a movement along both the consumption and savings function. d. both the consumption and savings functions upward.
- If Michelle's income is reduced to zero after she loses her job, her consumption will be and her saving will be O greater than zero; greater than zero O less than zero; greater than zero O greater than zero; less than zero O less than zero; less than zeroCo If the consumption function is of the form [C= 80 + 0.4 Y, the MPS equals Lütfen birini seçin. O A. 80 O B. -0.4. O C. 0.6. O D.04 O E.-0.6. Refer to the information provided in Table 22.4 below to answer the quesiIf Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to O save is 3/5. O consume is 1/2. O consume is 3/5. O consume is 2/5.