Suppose that Jane’s income increases from $1700 per month to $2350. At the same time, her consumption changes from $950 per month to $1300 month. What is Jane’s marginal propensity to consume? (Round your answer to two decimal places.)
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Suppose that Jane’s income increases from $1700 per month to $2350. At the same time, her consumption changes from $950 per month to $1300 month. What is Jane’s marginal propensity to consume? (Round your answer to two decimal places.)
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- Monica's current income went up from $100.000 to $105,000 and she increased her current consumption by $2100. What is her marginal propensity to consume?Draw the consumption function as the relation of the consumer's income and expenditure. What does the slope of the consumption function depend on? Is the consumer's income the only factor determining the level of his consumption spending?The consumption demand function merely states that as income goes up, households consume all their increased income
- At an income of $100,000, I spent $90,000 on consumer goods. When my income rose to $200,000, I spent $160,000 on consumer goods. My marginal propensity to consume is:assume you are given a $100 raise, and decide to save $20 of that money. also assume that if you make zero income in a year, you will still spend $7000. a.) what is your consumption function? b.) if you earn $20000 in a year how much will you spend? c.) will you be able to save while earning the above income?What is this household's marginal propensity to consume at c1 (in percent)?
- Suppose you know the following facts about consumer behavior of Amy in 2019. In a year, Amy spends $10000 on basic household items regardless of how much she is earning. For every dollar of disposable income earned, Amy spends 50% on extra purchases. Amy pays taxes in the amount of $1000, and receives no transfers. Use this information to: Derive Amy’s consumption function in nominal terms. Suppose the price level index in the economy for 2019 is estimated to be P = 2. Rewrite the consumption function in real terms.Suppose that when the price of a good rises by 8%, the quantity demanded that good falls by 13%. What is the approximate change in total expenditure (or total revenue)? Express your answer as a percentage. I got -6% but it is incorrect.If average income goes from $30,000 to $33,000 and consumption increases from $29,000 to $31,000, the marginal propensity to consume is Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. 67 b 1.5 1.06 0.96
- Please also find the MPS to the question with the MPC of 0.50 And find the MPC to the question with the MPS of 0.412. Savings decisions Kevin is a postdoctoral fellow who teaches astrophysics at a university where he earns an annual salary of $80,000. He intends to take the next year off to focus on writing a new undergraduate physics textbook, so he will not earn any income next year. He is currently deciding how much of this year's salary he should save for next year. Assume that there are no tax implications associated with the decision, and ignore what happens after next year. Therefore, next year Kevin will consume whatever he saves this year plus interest, and he is not concerned with the future beyond next year. The following graph shows Kevin's preferences for consumption this year and next year. Suppose initially Kevin cannot earn interest on the money he saves. Use the green line (triangle symbol) to plot Kevin's budget constraint (BC) on the following graph. Then use the black point (plus symbol) to show his optimum consumption bundle. Note: Dashed drop lines will automatically extend…The autonomous consumption expenditures and autonomous investment expenditures in an economy are $600 and $350, respectively. It is also observed that individuals spend 70% of their additional income on consumption. Write down the consumption function for this economy using the information provided above. (Round your response for the intercept term to the nearest whole number and for the slope term to one decimal place.) C . +..Y Write down the aggregate expenditure function for this economy using the information provided above. (Round your response for the intercept term to the nearest whole number and for the slope term to one decimal place.) AE =..+..Y •.. The equilibrium income that would set the actual national income to the desired aggregate expenditure is $. (Round your response to the nearest dollar.) If the actual national income were $1,584 in this economy, then the inventories of the firms would be failing or rising and firms would reduce or increase their output.