(a) To write: Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

Question

Explain why the marginal propensity to save and the marginal propensity to consume sum to 1.

Answer 1

Question

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

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Explain why the marginal propensity to save and the marginal propensity to consume sum to 1.

Answer 2

Question

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

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Answer 3

Question

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

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Answer 4

Question

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

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Answer 5

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

Answer 6

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

Answer 7

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

Answer 8

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

Answer 9

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

Answer 10

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

Answer 11

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

Answer 12

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Answer 23

Ch. 9 - Prob. 1E Ch. 9 - Prob. 2E Ch. 9 - Prob. 3E Ch. 9 - Prob. 4E Ch. 9 - Prob. 5E Ch. 9 - Prob. 6E Ch. 9 - Prob. 7E Ch. 9 - Prob. 8E Ch. 9 - Prob. 9E Ch. 9 - Prob. 10E

(a) To write: Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

Solution Summary: The author explains that disposable income rises by 100, and consumption by 75. The value of marginal propensity to consume is 0.75.

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

Chapter 9 Solutions

(a) To write: Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

Solution Summary: The author explains that disposable income rises by 100, and consumption by 75. The value of marginal propensity to consume is 0.75.

(a) To write: Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

(b) To write: Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

(c) To write: Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

Chapter 9 Solutions

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.