Find the consumption expenditure from the given information:- Autonomous consumption- 100 Marginal propensity to consume - 0.70 National income - 1000
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Find the consumption expenditure from the given information:-
Autonomous consumption- 100
Marginal propensity to consume - 0.70
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Solved in 2 steps
- Solve for (i) Equilibrium income and (ii) Income-expenditure multiplier for GSolve for Equilibrium income Y Disposable income YD Consumption expenditure C Autonomous spendingWhat is the vertical intercept of the consumpation function that represents the portion ofconsumption expenditure not associated with a level of disposable income?a. Consumption interceptb. Disposable income intercept c. Autonomous consumption d. Automatic consumption line
- (a) Explain the difference between induced consumption expenditure and autonomous consumption expenditure. Why is not all consumption expenditure induced expenditure? （b） How is it possible for households to have a negative savings rate and what has caused this negative household savings rate? Is this negative household savings rate sustainable in the long run?Why is consumption spending insufficient to explain economic growth and rising standards of living?1. What is meant by "autonomous consumption"? 2. Explain the consumption puzzle?
- For a given household, the value of change in consumption is $2500 and the change in income is $6200 What would be the value of Marginal propensity to ConsumeFind the value of consumption when autonomous consumption is 300 the value of MPC is 0.9 and income is 2000Construct a consumption function from the data given here and determine the MPC. Given the consumption function in the above question, what is the relationship between disposable income and consumption?
- Is the following statement TRUE or FALSE? Please provide reason for the answer. The positive relationship between consumption expenditure and disposable income can be shown by a positive slope of consumption curveThe table below provides Income and consumption Data in billions of dollars. Answer questions below based on it.Disposable Consumption SavingsIncome100 80 --------200 150 --------- What is the level of consumption when income is $300 billion? Group of answer choices $200 billion $240 billion $210 billion $60 billionWhat is exogenous (autonomous) expenditure and what is the value of the multiplier? Calculate equilibrium output for this economy. Show how you obtained your figure.