6. Use the following data to work Problems (a), (b), and (c). You are given the information in the table about the economy of Australia. Disposable Saving (billions of dollars per year) income -5 100 20 200 45 300 400 70 95 a. Calculate the marginal propensity to save. b. Calculate consumption at each level of disposable income. c. Calculate the marginal propensity to consume.

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
Problem 1.1P
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6. Use the following data to work Problems (a), (b), and (c).
You are given the information in the table about the
economy of Australia.
Disposable
income
Saving
(billions of dollars per year)
-5
100
20
200
45
300
70
400
95
a. Calculate the marginal propensity to save.
b. Calculate consumption at each level of disposable
income.
c. Calculate the marginal propensity to consume.
Transcribed Image Text:6. Use the following data to work Problems (a), (b), and (c). You are given the information in the table about the economy of Australia. Disposable income Saving (billions of dollars per year) -5 100 20 200 45 300 70 400 95 a. Calculate the marginal propensity to save. b. Calculate consumption at each level of disposable income. c. Calculate the marginal propensity to consume.
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