# https://newconnect.mheducation.com/flow/connect.htmlomeworkiHelpSavedData for output (real income) and saving are presented in the table belowa. Fill in the missing numbers (gray-shaded cells) in the table.Instructions: In the table, round your answers to 4 decimal places. If you are entering any negative numbers be sure to include anegative sign ) in front of those numbersLevel of Output andIncome (GDP DI)APSAPCSavingConsumption\$2401026042803001232016340203602438028400What is the valije nf the marninal nrnnensity tn conciimerNextof 16K Prev

Question
300 views

A) What is the value of the marginal propensity to consume? ( Round your answers to one decimal place). What is the value of the marginal propensity to save?

B) What is the break-even level of income in the table? (Enter your answer as a whole number)

What is the term that economists use for the saving situation shown at the \$ 240 level of income.

C) For each of the following items, indicate wheter the value in the table is either constant or variable as income changes:

The MPS is (constant/ variable) as income changes.

The APC is ( constant/ variable) as income changes.

The MPC is ( constant/ variable) as income changes.

The APS is (constant/ variable) as income chnages.

check_circle

Step 1

The completed table is shown below:

Step 2

a)

MPC = Change in consumption / Change in income

Here, the change in income and change in consumption is constant that is income changes by \$20 and consumption changes by \$16 every time.

So, MPC= 16/20 = 0.8

MPS= 1- MPC

Or, MPS = 1-0.8 = 0.2

Step 3

b)

The break-even level of income is \$260 where inco...

### Want to see the full answer?

See Solution

#### Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in