QUESTION 21 What is the marginal propensity to consume? O a. The ratio of the change in consumption to the change in national income O b. The proportion of national income that goes on consumption O c. The additional spending by a consumer when the price of a good falls Od. The additional revenue received by a firm when it attracts a new customer
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- 1. What would happen to multiplier if investment were to be positively related to income? 2. is it possible for total saving to fall when people beome more thirfty? 3. What is meant by multiplier?Why shoul the value of multiplier rise when people spend more on consumption?During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this economy is known to be equal to 10.Which of the following might have caused the increase in real GDP? Question 12Answer a. Exports increased by $0.3 billion. b. Investment decreased by $0.3 billion. c. Exports decreased by $0.3 billion. d. Imports increased by $0.3 billion. e. Government expenditure on goods and services increased by $3 billion.Which of the following will raise consumer expenditures, C? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с d a general increase in housing prices. an increase in interest rates. an increase in expected future income. an increase in the price level.
- 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 to6. The marginal propensity to consume is: A) the change in consumption divided by the change in income. B) consumption divided by income. C) the change in consumption divided by the change in saving. D) The change in saving divided by the change in income.25 1 Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20, national income is 1000, government expenditures is 200, tax is 50 Investment =300 O Investment-D350 O Investment3D400 O Investment3D450 O None of the above O
- 1. The marginal propensity to consume is:A) the change in consumption divided by the change in income.B) consumption divided by income.C) the change in consumption divided by the change in saving.D) The change in saving divided by the change in income.Quèstion 4 "As disposable income increases, consumption:" O And saving both increase. O Decreases and saving increases. O And saving both decrease. O Increases and saving decreases.graph below shows the economy oOT Japan. Planned Aggregate Expenditures 2400- 2100 1800- 1500 1200 AE 900- 600 AE Y 300- Potential Output 00 200 tobd 200d 2400 40 Reset Real income (in dollars) a) What type of gap exists in this economy, and how big is that gap? (Select one) $ 0 b) By how much must government expenditures change to eliminate this gap? (Select one) $ 0 c) Demonstrate this graphically in the graph above. Real aggregate expenditures (in dollars)
- 1 List Para. 1 No Spac. E Create and Share Requ A Select - Paragraph Adobe PDF Signat Styles Editing Adobe Acrobat Suppose the economy is four sectors economy. The economy is represented by the following: C= 400 + 0.40Yd G= 40 I= 25 T= 5 NX =- 25 where; C= Consumption G=Government Expenditure I= Investment T= Tax NX = Net Exports i. From the information above, calculate and sketch the diagram showing the equilibrium level of income. From the information above, calculate the level of consumption and saving that occurs at the equilibrium level of income. 1i. ENG - (United States) G Accessibility: Investigate US (hpIf the government 40 M on building a new highway calculate the multiplier and total new income qiven the following. MPC .85 MPS .1 MPC .6 Multiplier 4.8Refer to the dlagram glven below. Consumption Income The diagram given above shows consumptlon schedules. As Income rises, the marginal propensity to consume remains constant for. Multiple Cholce only C3- O only C. C2, ano C3. none of the consumption schedules. Drov 17ot 72 Next