Question

If consumption increases from $500 billion to $575 billion and income increases from $600 billion to...

If consumption increases from $500 billion to $575 billion and income increases from $600 billion to $700 billion, the marginal propensity to save is:
0.2.
There is not enough information to answer this question.
0.75.
0.25.
19. Which of the following is NOT a determinant of investment?
the amount of existing capital goods
technological innovations
past stock and bond prices
business expectations

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose disposable income is $1,000 when the average propensity to consume is 0.75. Then Group of...
Suppose disposable income is $1,000 when the average propensity to consume is 0.75. Then Group of answer choices the marginal propensity to consume must be 0.75. the slope of the consumption schedule must be 0.25 the level of saving is $250. the average propensity to save must be 0.2 If the MPC is .70 and investment increases by $6 billion, the equilibrium GDP will: Group of answer choices increase by $10 billion. increase by $20 billion. increase by $42 billion....
AE = C + I + G + (X-M) C – Consumption I – Investment G...
AE = C + I + G + (X-M) C – Consumption I – Investment G – Government Spending X – Exports M – Imports AE = Y Y = Income/Output C = Autonomous Consumption (a) + Marginal Propensity to Consume (MPC)*Y             i. Autonomous Consumption (a) – Consumption from Wealth (Past Savings)             *Autonomous Consumption can also be affected by Expectations, Household Debt, and Taxes.     ii. Marginal Propensity to Consume (MPC) – The percentage of every new dollar of...
Question 1 The relationship between consumption and disposable income is such that as consumption rises, disposable...
Question 1 The relationship between consumption and disposable income is such that as consumption rises, disposable income falls disposable income rises, consumption falls disposable income rises, consumption rises disposable income rises, saving falls Question 2 The federal government’s principal tool in altering consumer spending is changing corporate taxes changing federal sales taxes changing unemployment insurance benefits changing personal income taxes Question 3 The difference between disposable income and consumption spending is transfer payments personal taxes saving personal investment Question 4...
PART 1 Suppose the government increases education spending by $30 billion. If the marginal propensity to...
PART 1 Suppose the government increases education spending by $30 billion. If the marginal propensity to consume is 0.75, how much will total spending increase? Instructions: Enter your response as a whole number. $_________ billion PART 2 NEWS WIRE FISCAL RESTRAINT Retailers Bracing for Spending Slowdown Retailers across the country are bracing for an anticipated slowdown in consumer spending. As of January 1, the Social Security payroll tax rate moved back up from 4.2 to 6.2 percent. That will reduce...
If autonomous consumption is $1000, the MPC = 0.75, net taxes = $500, investment spending =...
If autonomous consumption is $1000, the MPC = 0.75, net taxes = $500, investment spending = $800, and govt purchases = $500, and NX = $0, what is equilibrium GDP? Question 1 options: $1,800 $1,925 $2,566.70 $7,200 $7,700 Question 2 (1 point) The focus of the short-run macro model is on the role of Question 2 options: spending in explaining economic fluctuations labor in explaining economic fluctuations financial markets in explaining economic fluctuations output in explaining economic fluctuations resources in...
1. Which of the following statements are correct? a. Economic growth and unemployment are areas on...
1. Which of the following statements are correct? a. Economic growth and unemployment are areas on which macroeconomics focus in contrast with the aggregate output level and employment level on which microeconomics focus. b. An increase in nominal GDP can be the result of an increase in the quantity produced of goods and services and/or an increase in the prices of goods and services produced. c. Stabilisation policies refer to fiscal policy and monetary policy. d. An increase of 20%...
Income C APC S APS 0 ? -- ? -- 100 ? ? ? ? 200...
Income C APC S APS 0 ? -- ? -- 100 ? ? ? ? 200 ? ? ? ? 300 ? ? ? ? 400 410 ? ? ? 500 500 ? ? ? 600 590 ? ? ? 700 680 ? ? ? Fill in the missing data wherever there is a question mark.                             (20 points) 2.Find the MPC and MPS for the above data. Show work!                               (10 points) 3.What is autonomous consumption in the above...
1. Suppose the United States economy is represented by the following equations: Z= C + I...
1. Suppose the United States economy is represented by the following equations: Z= C + I + G , C = 500 + 0.5Yd, Yd = Y − T T = 600, I = 300, G = 2000, Where, Z is demand for goods and services, Yd is disposable income, T is taxes, I is investment and G is government spending. Y is income/production. (a) Assume that the economy is in equilibrium. What does it mean in terms of the...
1. In the short-run IS-LM model with income taxation, taxes are given by ?=? +??. Suppose...
1. In the short-run IS-LM model with income taxation, taxes are given by ?=? +??. Suppose that MPC = 0.75 and the marginal tax rate ?=0.2. Then, when ? decreases by 1000, then for any given interest rate, the IS curve shifts: Select one: a. to the left by 1000. b. to the right by 3000. c. to the right by 3750 d. to the right by 1875. 2. Suppose that the adult population in an economy is 28 million,...
Assignment Description Using the principles of economics covered in learning materials from week 1 to week...
Assignment Description Using the principles of economics covered in learning materials from week 1 to week 10 inclusive, students should apply their understanding to analyse the macroeconomic issues and the policy responses. Students are expected to conduct some basic research and to reference journal articles, professional websites and other sources in the process. In doing this assignment you are required to use at least 4 academic sources and apply proper APA referencing style. Impact of COVID 19 on the Australian...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT