MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 8, Problem 11SQ
To determine
The MPC of the economy.
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When the value of average propensity to save is negative, then the value of marginal propensity to save will also be negative.
Calculate the value of marginal propensity to save when the change in savings is $350 and the change in income is $650
If the marginal propensity to consume is 0.75 then what is the marginal propensity to save?
Chapter 8 Solutions
MACROECONOMICS FOR TODAY
Ch. 8.4 - Prob. 1YTECh. 8 - Prob. 1SQPCh. 8 - Prob. 2SQPCh. 8 - Prob. 3SQPCh. 8 - Prob. 4SQPCh. 8 - Prob. 5SQPCh. 8 - Prob. 6SQPCh. 8 - Prob. 7SQPCh. 8 - Prob. 8SQPCh. 8 - Prob. 9SQP
Ch. 8 - Prob. 1SQCh. 8 - Prob. 2SQCh. 8 - Prob. 3SQCh. 8 - Prob. 4SQCh. 8 - Prob. 5SQCh. 8 - Prob. 6SQCh. 8 - Prob. 7SQCh. 8 - Prob. 8SQCh. 8 - Prob. 9SQCh. 8 - Prob. 10SQCh. 8 - Prob. 11SQCh. 8 - Prob. 12SQCh. 8 - Prob. 13SQCh. 8 - Prob. 14SQCh. 8 - Prob. 15SQCh. 8 - Prob. 16SQCh. 8 - Prob. 17SQCh. 8 - Prob. 18SQCh. 8 - Prob. 19SQCh. 8 - Prob. 20SQ
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Similar questions
- In the economy of Spendsalot, the marginal propensity to save, MPS, is 0.8. What is the marginal propensity to consume, MPC, for Spendsalot? Which value does MPC determine? a.the slope of tax revenues as a function of GDP b.the slope of pre‑tax consumption as a function of GDP c.the slope of pre‑tax investment as a function of GDP d.the slope of government consumption as a function of GDP.arrow_forwardMarginal Propensity to Consume = 0,7, so Marginal Propensity to Save: Select one alternative: MPS=0,3 MPS=1,3 MPS=1,7arrow_forwardHow to calculate marginal propensity to savearrow_forward
- TRUE/FALSE The value of average propensity to save can never be greater than 1arrow_forwardIf consumers save 21 cents out of every dollar received, the Multiple Choice marginal propensity to save is 0.21. multiplier is 0.21. marginal propensity to consume is 0.21. marginal propensity to save is 0.79.arrow_forwardIf the income level is 120 and total savings for that level is 40 find the average propensity to save would be?arrow_forward
- Q) For this question, assume the marginal propensity to consume is 0.7. a. Calculate the change in private saving, public saving, national saving, and investment when taxes increase $100. b. Calculate the change in private saving, public saving, national saving, and investment when government purchases decrease $100. c. Which causes a larger change in investment, the increase in taxes in part a or the decrease in government purchases in part b? Support your answer. Explain it correctly and all subparts.arrow_forwardCalculate average propensity to save if savings is $350 and income is $390arrow_forwardIf the marginal propensity to consume is 0.6 then the marginal propensity to save must be 0.4. 1. 1.4. 0.6.arrow_forward
- If you make $800 from a lucrative side business selling snack food in dorms, how much would you save if your marginal propensity to consume is 0.75? (do not include the dollar sign in your answer).arrow_forwardFind the value of marginal propensity to consume if change in income is $220 million and the change in consumption is $180 millionarrow_forwardQ-1 The following table shows income and consumption: Calculate: A- Saving (S), B- Marginal propensity to consume (MPC), C-Marginal propensity to save (MPS), D- Average propensity to consume (APC) E- Average propensity to save (APS).arrow_forward
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