Given a consumption function, C = co + cY, specified such that the marginal propensity to consume is 75%, how much will C increase by if Y increases by £3bn? a. £0.75bnb. £2,250mc. £2bn d. £1,500m
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Given a consumption function, C = co + cY, specified such that the marginal propensity to consume is 75%, how much will C increase by if Y increases by £3bn?
a. £0.75bn
b. £2,250m
c. £2bn
d. £1,500m
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- Given a consumption function, C = c0 + cY, specified such that the marginal propensity to consume is 75%, how much will C increase by if Y increases by £3bn? a. £0.75bnb. £2,250mc. £2bn d. £1,500mSuppose the marginal propensity to consume equals 0.7 (i.e., c1 = 0.7). Given this information, which of the following events will cause the largest increase in output? Select one: A. G increases by 250 B. T decreases by 250 C. I increases by 200 D. G increases by 250 and T increases by 250The Wilson family has a disposable income of $70,000 annually. Currently, the Wilson family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.8 and that their autonomous consumption spending is equal to $10,000. What is the amount of the Wilson family's annual consumer spending?
- Which one of the following statements relating to marginal propensity to consume is INCORRECT? (a) Marginal propensity to consume for a given consumption function is usually less than 1; (b) If the people in a country save 30c out of every rand they earn, the marginal propensity to consume in this country is said to be 0.7; (c) If the marginal propensity to consume is given as 0.622, then the value of the simple multiplier will be 2.5; (d) The larger the value of the marginal propensity to consume, the steeper the consumption function will be.Suppose 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 200If the consumption function is C = 80 + 0.6Y, then the marginal propensity to consume equals: 0.6. 0.4. 0.5. -0.4.
- Given the marginal propensity to consume (MPC) = 0.6 + 0.1/√Y and the autonomous consumption (c) = 45 when income (Y) = 0. Find the consumption function.If consumption is defined as C = 2,400 + 0.9Y, then the value of the marginal propensity to consume is 0.9. True FalseState whether it is true or not When the marginal propensity to consume is 0 the value of investment multiplier will also be 0
- Given the Marginal Propensity to Consume, Cʹ (Y) = 0.8 + 0.1 Y-1/2 And the information that C= Y, when Y= 100, find the consumption function?Given a consumption function, C = c0 + cY, specified such that the marginal propensity to consume is 75%, what will consumption expenditure be if total income is £538bn? a. £584+ c0 bn b. £403.5 + c0 bnc. £538 + c bnd. £403.5 bn
