When someone loses his job and has no income: His consumption becomes negative but his savings become positive. His consumption and savings become negative. His consumption and savings become positive. His consumption becomes positive but his savings becomes negative.

Q: If the government decreases taxes, disposable income does not change. falls. increases.…

A: personal disposable income is the part of personal income left after payment of direct taxes, it is…

Q: 3. If taxes increase, then:   a. disposable income decreases   b. disposable income increases…

A: Disposable income = Income - Taxes.

Q: Suppose that an economy consists of only two individuals. Trevor has $1870 available to spend on…

A: The gross domestic product(GDP) of an economy is defined as the amount of final commodities(goods…

Q: Consumption is O positively related to household income and wealth and households' expectations…

A: The consumption expenditure refers to the spending done by the households on various goods and…

Q: The rise in consumption is by $590 and the rise in income is by $700 Calculate MPC

A: The information given is as follows:- Change in Consumption = $590 ( positive )  Change in income =…

Q: Find the disposable income when the savings are  $190 and the consumption is $210!

A: Given information is: Savings: $190 Consumption: $210 To find: disposable income

Q: Find the value of change in income if change in consumption is $600 and MPC is 0.67

A: According to the above given question, the information given is as follows:- Change in consumption =…

Q: Calculate average propensity to save when it is given that income of household is $715 and the…

A: The information being provided to us is as follows:- Saving expenditure = $100 Income of the…

Q: In an economy the change in income is $6600 and change in investment is $3600 Calculate multiplier

A: The information being given is:- Change in income = $6600 Change in investment = $3600 We have to…

Q: Use the concepts of gross investment and net investment to distinguish between an economy that has a…

A: Gross investment comprises of total investment goods. These are those which replace equipment and…

Q: If there is an increase in the personal income tax rate, and people do not receive a pay increase,…

A: The tax is a unilateral payment made by the public towards the government for various purposes such…

Q: what will be the consumption expenditure when the income is 14330 million and the savings are 8100…

A: Generally in the question, Income is stated as = 14330 million Savings are usually denoted as = 8100…

Q: Which of the following is true of disposable income? Group of answer choices It excludes transfer…

A: We are going to discuss the properties and various aspects of disposable income to answer this…

Q: Calculate change in consumption when change in income is $300 and the MPC is 0.42

A: The information being given is as:- Change in income = $300  MPC = 0.42 Change in consumption = ?

Q: If the consumption level is $84 and the saving is $44 find the value of the national income???

A:

Q: Find the value of average propensity to save when the personal disposable income is 1200 billion and…

A:

Q: 23. If in an economy investment increases by Rs. 1000 lakhs to Rs. 1200 lakhs and as a result, total…

A: MPS or marginal propensity to save is a measure of extra savings of a household income. It is…

Q: Find the value of change in investment if the value of multiplier is 5 and the change in national…

A: The information being given is as follows:- MULTIPLIER = 5 Change in national income = $1000 million…

Q: Classify each of the following items as a final good or service or an intermediate good or​ service,…

A: A. A textbook bought by a student is a final good that is consumption expenditure. Consumption goods…

Q: Which curve is drawn at 45 degree to show income and consumption re

A: A line or curve making an angle of 45 degree and shooting from the origin is drawn as a line of…

Q: Why are changes in inventories included as part of investment spending? Suppose inventories declined…

A: GDP is a macroeconomic measure that is used to determine the total aggregate production in a…

Q: Explain why an economy’s output, in essence, is also its income.

A: ANS In an economy, all the goods that are produced are sold. Also, it should be noted that whatever…

Q: The value of MPC is 0.76  Calculate the value of MPS

A: We are given that:- Marginal propensity to consume = 0.76 Also we know that the sum of MPS and MPC…

Q: How is it possible for consumption expenditure to be positive even when disposable income is zero?

A: The consumption function gives the relationship between consumption and disposable income.

Q: There is a direct relationship between spendable income and consumer spending

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: The following consumption function of an economy is given3; 40+0.8Y where Y is national income If…

A: Solution is given:

Q: Data for output (real income) and savings are presented in the table below. a. Fill in the missing…

A: Formula to calculate:- a) APC=CYb) APS=SYc) MPC=∆C∆Yd) MPS=∆S∆Y

Q: The consumption expenditure and output of the country is 500 billion and 100 billion respectively.…

A: Given the consumption (C) = 500 billion National income (Y) = 100 billion

Q: The figure shows the flows of income and expenditure in an economy. In 2008, Q was $1,100 billion, U…

A: The circular flow of income represents the flow of money, goods and services among different sectors…

Q: Calculate the value of final Consumption Expenditure when the value of national income is $5000 ,…

A: # The value of the final consumption expenditure is given by the equation:- C = Autonomous…

Q: If a person income was 1560 Rial and his new income is 2250 Rial. His old consumption was 840 and…

A: Given: Old income = 1560 Rial New income = 2250 Rial Old consumption = 840 New consumption = 1350

Q: From the given data calculate the investment expenditure 1) Equilibrium level of income = 5000 2)…

A:

Q: In an economy S = -60 + 0.2Y and the invesment is 5000 calculate the 1)Equilibrium level of the…

A:

Q: Calculate the value of change in consumption if change in income is $2200 and MPC is 0.34

A: (Q) Calculate the value of change in consumption if a change in income is $2200 and MPC is 0.34

Q: 16. Find consumption expenditure from the following National Income Rs. 5000 Autonomous Consumption…

A:

Q: Graphically illustrate the aggregate consumption and saving functions. Explain

A: The consumption is the using of the income and resource to purchase the commodities and services…

Q: Explain some reasons why consumption spending and gross private domestic investment spending are so…

A: GDP (Gross Domestic Product): It refers to the total of market value of all produced final goods and…

Q: With the help of consumption function C=10+0.5Y, calculate savings at an income level of $500

A: The consumer spending depends upon various factors such as income level, interest rate, age,…

Q: Find the saving when the income is 50 and consumption is 60

A: Actually in the question Income level is = 50 Consumption is stated as = 60 Savings needed = ?

Q: Explain the difference between induced consumption expenditure and autonomous consumption…

A: Consumption expenditure is the expenditure incurred by the household sector on the purchase of final…

Q: If consumption expenditure is $3100 and savings is $1800 Calculate income

A: According to the above mentioned question, we have:- Consumption expenditure = $3100 Savings = $1800…

Q: The value of consumption is $1000 and income is $2200  Calculate the value of average propensity to…

A: The given information is as follows:- Consumption = $1000 Income = $2200 This means out of $2200,…

Q: If current and future consumption are both normal goods, a decrease in the interest rate will…

A: A decrease in interest rate will reduce future consumption and increase current consumption.

Q: Consumption Function) How would an increase in each of the following affect the consumption…

A: The consumption function refers to the standard equation of consumption that indicates the…

Q: If MPC is 0.12 and the change in income is $3300  Calculate change in consumption

A: The information being given is:- Marginal propensity to consume = 0.12  Change in income = $3300 We…

Q: 16. Find consumption expenditure from the following National Income =Rs. 5000 Autonomous Consumption…

A: Consumption expenditures measure consumer spending for a period of time. The consumption function is…

Q: Because consumption is largely determined by_________ income, consumption is _________equally…

A: Answer: Correct option: a (permanent; more) Explanation: Permanent income refers to the average…

Q: Change in savings is $2000 and change in income is $4300 Calculate MPS

A: The information being given is:- Change in Savings = $2000 Change in income = $4300 We have to…

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.