Given a consumption function, C = c0 + cY, specified such that the marginal propensity to consume is 75%, how much will C increase by if Y increases by £3bn? a. £0.75bnb. £2,250mc. £2bn d. £1,500m
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Given a consumption function, C = c0 + cY, specified such that the marginal propensity to consume is 75%, how much will C increase by if Y increases by £3bn?
a. £0.75bn
b. £2,250m
c. £2bn
d. £1,500m
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- Given a consumption function, C = c0 + cY, specified such that the marginal propensity to consume is 75%, what will consumption expenditure be if total income is £538bn? a. £584+ c0 bn b. £403.5 + c0 bnc. £538 + c bnd. £403.5 bnIf C = 150 + .6Y and I = 50 then a. how much is autonomous consumption,MPC,MPS,Equilibrium level,investiment multiplier b. If investment increases by 50, using the multiplier you found above what will be the change in Y? What will be the new Y (Y2)?Suppose output and income is equal to 16100, the marginal propensity to consume is 0.65, and autonomous consumption is 675. Calculate total saving for this economy, assuming no public or foreign sector. (Round your answer to the nearest whole number.)
- Given a consumption function, C = co + cY, specified such that the marginal propensity to consume is 75%, how much will C increase by if Y increases by £3bn? a. £0.75bnb. £2,250mc. £2bn d. £1,500mGiven the Consumption Function C = 500 + 0.80Y, comppute the marginal propensity to consume and the marginal propensity to save of households?For the consumption function C= 10 + - (a) find the marginal propensity to consume when /= 16; (b) find the marginal propensity to save with / = 16.
- 140 120 100 80 60 40 40 60 80 100 120 -20 + -40 income: Q 01. Given this diagram of Consumption and Savigns functions, what is the mpc (marginal propensity to consume? 20 20 expenditures, incomeWhich of the following would be most likely to increase consumption spending? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a A reduction in consumer credit card debt b A drop in stock prices c A higher interest rate d The expectation of lower future pricesIf the value of average propensity to save is -0.9 what will be the value of average propensity to consume
- If the consumption function is C 100 +0.8and planned investment spending is 200 what is the equilibrium level of output?if planned investment falls by 100 how much does the equilibrium level of out put fall?If autonomous consumption is 400 and the multiplier is 4, the saving function is equal to * S= 400 +4Yd S= -400 + 0.75Yd S= 400 +0.1Yd S= -400+0.25Y. Suppose disposable income increases from $7 trillion to $8 trillion. At the same time, consumption expenditure increases from $6.8 trillion to Thus the MPC must equal $7.8 trillion; 0.60 $7.6 trillion; 0.80 $7.4 trillion; 0.40 $8 trillion; 1.00The Martin family has a disposable income of $90,000 annually. Currently, the Martin family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.8 and that their autonomous consumption spending is equal to $10,000. What is the amount of the Martin family's annual consumer spending? %24