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- If disposable income is $900 billion when the average propensity to consume is 0.6, it can be concluded that saving is $360 billion. $540 billion. $900 billion. $400 billion.If disposable income is $800 billion when the average propensity to consume is 0.8, it can be concluded that saving is*Assume the economy is in a recession, and it is estimated that a change of $800 billion in federal government spending will boost GDP by $4,000 billion this year. Based on this information, what is the value of the MPC used in this forecast?
- In an economy MPC equals to 0.85 if investment is increased by $20 how more would be the increase in incomeTrue or False: If consumption expenditure in a medium sized economy is $1.5 (trillion) while disposable income is $2.0 (trillion), the marginal propensity to save from disposable income must be equal to 25%.There is an increase in investment of $2000 million in an economy. MPC is given to be as 0. Calculate the total increase in income.
- The average propensity to consume refers to the Group of answer choices percentage of income spent for current consumption expenditures for the minimum necessities of life percentage of income saved dollars of income spent for current consumption fact that people with higher incomes spend more for the necessities of lifeFind the value of average propensity to save when the personal disposable income is 1200 billion and the consumption expenditure is 760 billion also find the saving alsoAssume the following consumption schedule: C = 20 + 0.9Y, where C is consumption and Y is disposable income. At a(n) $1,000 level of disposable income, the level of saving is $80. $920. $180. $18.