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A: The average propensity to save is given as the savings per unit of income. APS = S / Y
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Q: TRUE/FALSE The value of average propensity to save can never be greater than 1
A: # Average propensity to save is given as the ratio of Savings to income. APS = S / Y
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Q: Find the value of the aggregate demand when the consumption demand is $130 and the invesment demand…
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Q: Average propensity to save is always greater than 0 True/False
A: # Average propensity to save is given as the ratio of savings to income. APS = S/Y
Q: Disposable income - 200, 225, 250, 275, 300 Consumption - 205, 225, 245, 265, 285 Refer to the…
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Q: Given the import function, Z = 300 + 2/3Y, which of the following statements is correct? (a) The…
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- If aggretate exppenditure is greater than total income: investment will decrease because such a high level cannot be sustained. planned savings will decrease in line with investment. output will increase to replenish depleted inventories. investment will decrease to run down excessive inventories. there is an error, since the two are same by definitionIncreasing government purchases of goods and services would have a bigger multiplier effect on real GDP than decreasing taxes, dollar for dollar. Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b True FalseIf inventories unexpectly rise, then production ______________ sales and firms will respond by _______________ output. a. Trails,expanding b. Trails, reducing c. Exceeds, expanding d. Exceeds, reducing
- If the supply of petroleum were reduced by petroleum firms due to rising inventories, we can expect what?As the multiplier process is working on the demand side, a. firms will meet the additional demand without raising prices. b. firms will not meet the additional demand. c. firms will meet the additional demand only by raising prices. d. the multiplier process will cease creating demandu(x,y)=x^3+y, p_y=2; find ordinary demand for x. Calculate CS when p_x=1
- The potential GDP of the country is 380 billion euros, and the actual is 240. The marginal propensity to consume is 0.8. Determine the change in government expenditures to get to the equilibrium point:The marginal propensity to save is 0.15, tthe marginal propensity to consume: (A) is 1.15. (B) is 0.85. (C) is 0.15. (D) cannot be determined by the given information.If the multiplier in an economy is 5, a $20 billion increase in net exports will. make sure the answer is accurate.Group of answer choices decrease GDP by $100 billion. increase GDP by $20 billion. increase GDP by $100 billion. reduce GDP by $4 billion.