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- The table below provides income and consumption data in billions of dollars: Disposable Income Consumption Savings 100 80 --- 200 150 --- What is the marginal propensity to save for this economy? A) 0.75 B) 0.5 C) 0.3 D) Cannot be determinedQ8. For the data in the following table, the consumption function is C = 800 + 0.6(Y – T). Fill in the columns in the table and identify the equilibrium output. Output Net Taxes Disposable Income Consumption Saving Planned Investment Government Expenditure Planned AE Unplanned Inventory change 2100 100 300 400 2600 3100 3600 4100 4600 5100Suppose the marginal propensity to consume equals 0.8 (i.e., c1 = 0.8). Given this information, which of the following events will cause the largest increase in output? Select one or more: a. Public spending, G, increases by 200 b. real GDP was larger than nominal GDP from 2002 to 2008 Public spending, G, increases by 150 c. Investment, I, increases by 150 d. Taxes, T, decrease by 200
- Autonomous consumption = R100m Investment spending = R300m Government spending = R200 million Exports = R150 millionAutonomous imports = R100 million Marginal propensity to consume =2/3 Tax rate = 1/10Marginal propensity to import = 1/10 Yf = R2 150 million. Calculate the change in government spending required to reach full employment in the economy.If the marginal propensity to consume is 0.9, every $10 billion increase in taxes will cause a maximum change in real GDP of 100 billion 90 billon 9 billion -10billion -90 billionThe 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
- Given the following information, answer the question. Autonomous consumption = R100 million Investment spending = R300 million Government spending = R200 million Taxes = R60 million Marginal propensity to consume = ¾ The equilibrium level of output and income is equal to ______. Select one: A. R2 160 million B. R2 580 million C. R2 640 million D. R2 220 millionThe 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 consumption expenditure from the given information:- Autonomous consumption- 100 Marginal propensity to consume - 0.70 National income - 1000