Given that national income is 7800 crore and consumption expenditure is 640 crore, what is the average propensity to consume? When income increases to 1000 crore and consumption increases to 790 crore, what will be the marginal propensity to consume?
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Q: Using a suitable graph, what is the effect on national income if people increase autonomous saving?
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Q: The maginal propensity to consume of country is 0.8 and the country increases its investment by 5…
A: Marginal Propensity to Consume (MPC) = 0.8 Change in investment = 5 billion
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A: (A)
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A: C=300+0.75Y I=100 G=100 X=M=T=0
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A: Solution is given:
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Q: 16. Find consumption expenditure from the following National Income Rs. 5000 Autonomous Consumption…
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A: here we can calculate the increases in income by using multiplier formula which are as follow-
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- Equation for consumption is C=40/(0.8Y) where Y= yearly income = $400. The marginal propensity to consume is _______?Monica's current income went up from $100.000 to $105,000 and she increased her current consumption by $2100. What is her marginal propensity to consume?Suppose that Jane’s income increases from $1700 per month to $2350. At the same time, her consumption changes from $950 per month to $1300 month. What is Jane’s marginal propensity to consume? (Round your answer to two decimal places.)
- Calculate autonomous consumption expenditure from the following date about an economy which is In equilibrium.National income = Rs. 1,100Marginal propensity to save = 0.20Investment expenditure = Rs. 80(Autonomous Consumption Expenditure = 120Study the scenario and complete the question(s) that follow(s):SilesiaYou are provided with the following information about an imaginary economy called Silesia. Use the information provided in the table to answer the questions below.Government expenditure 400 Exports 250 Autonomous imports 50 Autonomous consumption 150 Investment Expenditure 300 Full- mployment output 2040 Marginal propensity to consume 0.75 Marginal propensity to import 0.15 Tax rate 0.25Source: Bester, N. 2017.5.1 Derive and calculate the consumption function for the data provided. Show all formulas and calculations used. 5.2 Calculate autonomous spending. Show all formulas and calculations used.5.3 Calculate the multiplier. Show all formulas and calculations used. Round off your final answer to 1 decimal.Allie has a marginal propensity to consume of 0.75. What does this mean? a. He's spending more than he's making in income b. 75 cents of every additional dollar of his income is saved. c. 75 cents of every additional dollar of his income is spent on consumption. d. 25 cents of every additional dollar of his income is spent on consumption.
- Prove and interpret the following. Marginal Propensity to Consume + Marginal Propensity to Save = 1 WV = 2/3 UV (Where UV=300)Assume in a simple economy that the level of saving is –500 whenaggregate output equals zero and that the marginal propensity tosave is 0.2. Derive the saving function and the consumption func-tion, and draw a graph showing these functions. At what level ofaggregate output does the consumption curve cross the 45° line?Explain your answer and show this on the graph.Suppose we have the following consumption function in an economy C = 2000 + 0.9YD. Howmuch government spending has to be increased in order to have an increase in equilibriumoutput equal to 1000? a. 100.b. 200.c. 250.d. 1000.e. none of these.f. do not have adequate information.
- Assume in country Y, the average marginal propensity to save is 0.2. When the aggregateincome is zero, consumers spend 50 to consume. Derive the saving function and consumptionfunction for this country. What happens to consumption when the propensity to savedecreases to 0.1? Explain your answer and show this on the graph.Equation for consumption is C=40/(0.8Y) where Y= yearly income = $400. A) what is the level of consumption B) what is the average propensity to consumeWhat is this household's marginal propensity to consume at c1 (in percent)?