Question No.1
Remember: Average Propensity to Consume (APC)/Income; Average Propensity to Save (APS) = Savings/Income; Saving (S) + Consumption (C) = Income.
Please show your calculations for (a) to (d):
A) If disposable income is $3,000 and savings $1,200, how much is the average propensity to consume? 1800
b) If disposable income increases from $250 to $300 and saving increases from $40 to $50, how much is the average propensity to save? 0.167
C) If your income is $35,000 and the average propensity to save is 0.46, what is consumption?
D) If you spend $35,000 and your income is $60,000, what is your average propensity to save? .58
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Question No.1
Remember: Average Propensity to Consume (APC)/Income; Average Propensity to Save (APS) = Savings/Income; Saving (S) + Consumption (C) = Income.
Please show your calculations for (a) to (d):
A) If disposable income is $3,000 and savings $1,200, how much is the average propensity to consume? 1800
b) If disposable income increases from $250 to $300 and saving increases from $40 to $50, how much is the average propensity to save? 0.167
C) If your income is $35,000 and the average propensity to save is 0.46, what is consumption?
D) If you spend $35,000 and your income is $60,000, what is your average propensity to save? .58