Answered: An increase in expected future…

An increase in expected future income________. Select one: A. decreases consumption expenditure B. increases saving C. shifts the consumption function upward D. shifts the saving function upward

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.2P

See similar textbooks

Related questions

Q: Yo Which one of the following statements is false? A Y1 represents the equilibrium level of income.…

A: In a two-sector economy, government expenditure and net export will be both equal to zero. In…

Q: Which of the following statement is NOT true? Select one: A. APC + APS = 1 B. MPC = APC C. MPC +…

A: Answer - "Thank you for submitting the question. But, we arasuthorized to solve one question at…

Q: Which of the following would be most likely to increase consumption spending? Select an answer and…

A: Consumption spending refers to the expenditures made by individuals and households on the purchase…

Q: 1) The above table has data on the consumption function in the nation of Mojo. a) What is the amount…

A: The given table has data on the consumption function in the nation of Mojo

Q: In an economy the value of Marginal propensity to save Is 0.21 Calculate the value of Marginal…

A: Marginal propensity to save (MPS) is the slope of the saving curve. It implies that how much saving…

Q: The table shows disposable income and consumption expenditure in an economy. Calculate saving when…

A: disposable income: Total personal income less personal current taxes equals disposable income.…

Q: personal consumption expenditures (C) and disposable income (Y d): Year C Y d 1 300 400 2 500 700…

A: (a) Given that, Consumption of year one = 300 Consumption of year two = 500 Income of year one =…

Q: Assume an economy in which: (i) there are no exports and no imports, (ii) investors always want to…

A: The planned investment is the amount that the firms are intended to invest for purchasing new…

Q: Which of the following would be most likely to increase consumption spending? Select an answer and…

Q: Assume autonomous consumption is Gh¢ 400 million, autonomous investment is Gh¢ 300 million and…

A: i.) Equilibrium national income: Equilibrium national income can be calculated as follows: Thus,…

Q: Fill in the blanks: Suppose when disposable personal income increases from $1,000 to $1,500,…

A: Saving = income - consumption. Marginal propensity to consume = change in consumption/ change in…

Q: Consider the Savings-Investment model involving: The Savings function: S = S0+s1Y+s2r; and the…

A: Equilibrium occurs at a point where : AD = AS C + I = C + S Cancelling C from both sides we get ,…

Q: Suppose the marginal propensity to consume is 0.6 how much increase in the investment is required to…

Q: Assume the following consumption schedule: C= 20 + 0.9 Y, where C is consumption and Y is disposable…

A: The economies around the globe tend to have various entities, who are involved in various…

Q: The table gives you information about the economy of Bluebird Island. Disposable Consumption…

A: Marginal propensity to consume refers to the change in the consumption level in an economy due to…

Q: b. What is the break-even level of income in the table? What is the term that economists use for the…

A: [a] GDP($Y) Consumption (GDP-S) Saving Change in Y Change in C Change in S APC(C/Y) APS(S/Y) MPC…

Q: MPC and MPS) If consumption increases by $12 billion when real disposable income increases by $15…

A: MPC is nothing but then ratio of change in consumption to the change in real disposable income.

Q: 1. You are given data on the following variables in an economy: Government spending 300 Planned…

A: Given information C=600 Y=1500 MPC=0.5 Government Spending =300 I= 200 Net export=50 Autonomous…

Q: saving in this economy at Yd = 6000 million

A: SAVING FUNCTION - The functional relationship between saving and income is known as the saving…

Q: Answer the questions on the basis of the information given in the following diagram: Guideline…

A: Marginal propensity to consume is the ratio of change in consumption and change in income level.

Q: 7. The marginal propensity to save is 0.15, the marginal propensity to consume:

A: GIVEN The marginal propensity to save is 0.15 the marginal propensity to consume:

Q: Given that national income is 80 crores and consumption expenditure 64 crores, find out the average…

A: National income is defined in economics as the value of goods and services generated in a country…

Q: (a)‌Elaborate‌ ‌‌THREE‌ ‌(3)‌ ‌determinants‌ ‌in‌ ‌which‌ ‌consumption‌ ‌can‌ ‌be‌ ‌increased‌…

A: Note: As per the guidelines we’ll answer the 1st question. Please submit a new question by…

Q: Assume that the consumption function is given by C = 500 + 0.75 (Y − T). If income increases by 100,…

A: C = 500 + 0.75(Y-T) Where C is consumption Y is income T is tax ----------------- Let's find the…

Q: : If at a particular time the level of income in Saudi economy is SR 50,000 million and the level of…

A: Average propensity to save meaning the proportion of income that is saved instead of spending in…

Q: The average propensity to save is 2 times the average propensity to consume Calculate (1) APC (2)…

A: The data presented in the question is:- APS = 2APC We have to calculate APS and APC

Q: )Which of the following changes will shift the consumption function upward? Part 2 A. an increase…

A: The equation of consumption function is given as C= C+cY Where C is autonomous consumption i.e. does…

Q: Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, and public…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…

Q: Find the consumption expenditure from the given information:- Autonomous consumption- 100…

A: # Lets first consider the concept of consumption expenditure. It refers to the spending on goods and…

Q: 2. At S10,000 of disposable income, Audrey's consumption expenditure was $11,000. At $20,000 of…

A: Formula to calculate Marginal Propensity Save:-…

Q: I. Autonomous consumption is always positive II. Consumption is always positive III. The marginal…

A: Consumption function: C = c + MPC * Y Where C is consumption c is autonomous consumption, i.e., the…

Q: Answer the questions on the basis of the information given in the following diagram: Guideline…

A: Ques 1) Given : C' = 54 C = C' + b Y Where C' = autonomous consumption b = MPC

Q: Suppose the MPC in an economy is 0.65. The APC is initially 0.9 and disposable income is $6 billion.…

A: Disposable income is the income available to the people after paying the taxes and social security…

Q: Why is saving called a leakage? Why is planned investment called an injection? Why must saving equal…

A: Saving is a leakage because it is a leakage from the flow of aggregate consumption expenditure…

Q: a=$250b, I=$500b, G= $350b, MPC=80%; Calculate: the multiplier the equilibrium level of income

A: The multiplier value depends on the value of the marginal propensity to consume. Higher the MPC,…

Question

An increase in expected future income________.

Select one:

A. decreases consumption expenditure

B. increases saving

C. shifts the consumption function upward

D. shifts the saving function upward

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

1. The marginal propensity to consume is:A) the change in consumption divided by the change in income.B) consumption divided by income.C) the change in consumption divided by the change in saving.D) The change in saving divided by the change in income.
Give typing answer with explanation and conclusion Which of the following statements concerning consumption is incorrect? A. WEALTHY PEOPLE CONSUME MORE THAN OTHER PEOPLE. B. EXPECTATIONS ABOUT FUTURE PRICES AFFECT CONSUMPTION. C. MARGINAL PROPENSITY TO CONSUME USUALLY DECREASES AS INCOMES RISE. D. SAVINGS RATES DECREASE AS INCOME INCREASES. E. TAX INCREASES REDUCE CONSUMPTION.
personal consumption expenditures (C) and disposable income (Y d): Year C Y d1 300 400 2 500 700 a. Compute the marginal propensity to consume. b. Compute the amount of savings for years 1 and 2. c. Compute the marginal propensity to save.
Given that national income is 80 crores and consumption expenditure 64 crores, find out the average propensity to save. When income rises to 100 crores and consumption expenditure to 78 crores. What will be the average propensity to consume and the marginal propensity to consume? Typed and correct answer please. I will rate accordingly.
Which of the following statement is NOT true? Select one: A. APC + APS = 1 B. MPC = APC C. MPC + MPS =1 D. MPC + MPS = APC +APS An increase in expected future income________. Select one: A. decreases consumption expenditure B. increases saving C. shifts the consumption function upward D. shifts the saving function upward
Given the Consumption Function C = 500 + 0.80Y, comppute the marginal propensity to consume and the marginal propensity to save of households?
I consumed all my income at every level of income.Draw my consumption and saving function.What are my MPC and MPS? Explain why it must always be true that MPC+MPS equal to 1?
2. The marginal propensity to save is 0.15, the marginal propensity to consume:(A) is 1.15. (B) is 0.85. (C) is 0.15. (D) cannot be determined by the given information.
MCQ The table below provides income and consumption data in billions of dollars: Disposable Income Consumption Savings 100 80 --- 200 150 --- Calculate the marginal propensity to consume for the economy. A) 0.8 B) 0.2 C) 0.3 D) 0.7
Assume a simple closed economy without exports and imports. autonomous consumption expenditure is 50 billion. The marginal propensity to consume is 0.6 desired investement is 10 billion and govt pirchase is 20 billion. Write a mathematical equation expressing Savings as a function os disposable income ?
What is the meaning of "animal spirits"? How do these relate to planned investment spending and to unplanned investment spending?
Y C I G X $ 100 $ 120 $ 20 $ 30 $ 10 $ 300 $ 300 $ 20 $ 30 - $ 10 $ 500 $ 480 $ 20 $ 30 - $ 30 $ 700 $ 660 $ 20 $ 30 - $ 50 a.What is the multiplier? b.What is the equilibrium level of the real GDP? c.What is the value of autonomous consumption?