Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 9, Problem 9E
To determine
(a)
To write:
Disposable income is $500, and consumption is $450. The value of savings.
To determine
(b)
To write:
Disposable income is $1,200 and APS is 0.9. The value of savings.
To determine
(c)
To write:
MPC = 0.9, disposable income rises from $800 to $900. Saving was originally at $120 when income was $800. The value of savings now.
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What is the level of saving if: The MPC equals .9, disposable income rises from $ 800 to $ 900, and saving is originally $ 120 when income equals $ 800?
Suppose that disposable income consumption and saving in some countries are 200 billion, 150 billion and 50 billion respectively.  Next, assume that disposable income increases by 20 billion, consumption rises by 18 billion, in saving goes up by 2 billion. What is the economies MPC? It’s MPS? What was the APC before the increase in disposable income? After the increase? 
The change in consumption divided by the change in disposable income is equal to
A.
household saving.
B.
the slope of the consumption function.
C.
real GDP.
D.
aggregate expenditure.
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