Based on the information in the following table: Income Consumption Saving $30,000 $30,000 0 40,000 35,000 5,000 50,000 40,000 10,000

Published on October 2017 | Categories: Internet & Technology | Downloads: 83 | Comments: 0 | Views: 396
of 1
Download PDF   Embed   Report

Based on the information in the following table: Income Consumption Saving $30,000 $30,000 0 40,000 35,000 5,000 50,000 40,000 10,000 1. What is the Marginal Propensity to Consume? 2. Since the APC varies with income level, what is the Average Propensity to Consume at income level I=$40,000? 3.What is the Marginal Propensity to Save? 4.Since the APS varies with income level, what is the Average Propensity to Save at income level I=$40,000? Remember: Marginal Propensity to Consume (MPC) = Change in Consumption/Change in Income (or ∆C/∆I); Marginal Propensity to Save (MPS) = Change in Savings/Change in Income (or ∆S/∆I); MPC + MPS ; see Question 1 for reminder of definitions for APC and APS.

Comments

Content

Based on the information in the following table: Income Consumption Saving $30,000 $30,000 0 40,000 35,000 5,000 50,000 40,000 10,000 1. What is the Marginal Propensity to Consume? 2. Since the APC varies with income level, what is the Average Propensity to Consume at income level I=$40,000? 3.What is the Marginal Propensity to Save? 4.Since the APS varies with income level, what is the Average Propensity to Save at income level I=$40,000? Remember: Marginal Propensity to Consume (MPC) = Change in Consumption/Change in Income (or ∆C/∆I); Marginal Propensity to Save (MPS) = Change in Savings/Change in Income (or ∆S/∆I); MPC + MPS ; see Question 1 for reminder of definitions for APC and APS.

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close