The change in output following a change in autonomous expenditure is known as the: (a) Investment Function. (b) Marginal Propensity to Consume; (c) Marginal Propensity to Invest; (d) Multiplier
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The change in output following a change in autonomous expenditure is known as the:
(a) Investment Function.
(b) Marginal Propensity to Consume;
(c) Marginal Propensity to Invest;
(d) Multiplier
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Solved in 3 steps
- The marginal propensity to consume is Select one: a. never bigger than 1 b. equal to disposable income divided by consumption c. always equal to the marginal propensity to save d. normally assumed to increase as disposable income increases e. all of the aboveThe initial impact of an unexpected decrease in consumer spending will be a(n) investment spending. A) decrease in planned B) decrease in unplanned C) increase in planned D) increase in unplannedThe simple multiplier is: a) consumption spending divided by saving. b) one divided by one minus the marginal propensity to consume. c) one plus the marginal propensity to consume. d) one divided by one plus the marginal propensity to consume. e) the MPC.
- Which of the following statements is correct? The saving function and the consumption function have the same slope. The consumption function is the same in the short and in the long run. Disposable income does not affect the level of savings. The steeper the consumption function, the flatter the saving function.7. If the consumption function is C=80 + 0.6Y, the marginal propensity to save equals:(A) 0.6. (B) 0.4. (C) 0.5. (D) -0.4.The figure represents the consumption function for a consumer. The distance between C and D represents A. the amount of saving. B. the amount of autonomous consumption. C. the amount of dissaving. D. the point where saving equals zero.
- Find the value of consumption when autonomous consumption is 100 ,MPC is 0.6 And Y= 2000In a private closed economy (a) the marginal propensity to save is 0.2, (b) consumption equals income when consumption is $120 billion, and (c) the level of investment is $40 billion. What is the equilibrium level of income? Multiple Choice $320 billion $280 billion $198 billion $262 billionConsumption Function Suppose that a country's consumption function is given by C=(9\sqrt(I)+0.8\sqrt(I^(3))-0.3I)/(\sqrt(I)) where C and I are expressed in billions of dollars. (a) Find the marginal propensity to save when income is $25 billion. (b) Determine the relative rate of change C with respecy to I when income is $25 bilion.
- As a function of real GDP (real GDP being measured on the horizontal axis), autonomous investment is represented by a(n): A) U-shaped curve. B) vertical line. C) positively sloped line D) negatively sloped line. E) horizontal line.Assume that the consumption function is given by C = 500 + 0.75 (Y − T). If income increases by 100, then saving will increase byAssume that the level of autonomous consumption rises. Show in a graph what happens to the consumption function. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.