5. When income is $1,000, the level of consumption spending is equal to $850. When income rises...

Question:

5. When income is $1,000, the level of consumption spending is equal to $850. When income rises to $1,200, the level of consumption spending is equal to $1,000.

In this case the value of the marginal propensity to consume is

a. 0.85.

b. 0.83.

c. 0.75.

d. 0.50.

e. 0.80.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

See More Books

Question Posted: Oct 16, 2024 09:00 AM

See More Questions

6 | Consumer Choices Figure 6.1 Investment Choices Higher education is generally viewed as a good investment, if one can afford it, regardless of the state of the economy. (Credit: modification of...
1. What are the advantages and disadvantages of Rosetta Stone going public? 2. What do you think the current value of a share of Rosetta Stone is (at the time of the case)? Justify your valuation on...
Please use the attachment for guidance. Complete each of the following economic problems. Problem A Use the national income data in the table below to compute the following: GDP. NDP. NI....
Starting with the general linear form (16.2.1), verify the interpolation relations (16.2.4) and (16.2.5). Equation 16.2.1 Equation 16.2.4 Equation 16.2.5 u(x,y) = C+Ccx + c3y
Two years ago, Warren purchased a computer for $4,000 that was used exclusively for personal purposes until this year. At the beginning of the current year, Warren opened a consulting business as a...
Murray Kiser operates his own catering service. Summary financial data for February are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction...
5. When income is $1,000, the level of consumption spending is equal to $850. When income rises to $1,200, the level of consumption spending is equal to $1,000. In this case the value of the marginal...
The accounting records of Maura Grayson Architect, P.C., include the following selected, unadjusted balances at March 31: Accounts receivable, $1,400; Supplies, $1,100; Salary payable, $0; Unearned...
Write the method that takes a Rectangle as a parameter, and changes the width so it becomes a squaresince it set to be the width is set to the value of the length. This method must be called...
4. If the marginal propensity to consume is 0.5, then a $100 million increase in investment spending will increase real GDP by a. $100 million. b. $200 million. c. $50 million. d. $150 million. e....
1 The meaning of the aggregate consumption function, which shows how current disposable income affects consumer spending
What is a make-or-buy decision?
After the Francis Scott Key Bridge collapsed at March 27, 2024, Baltimore County constructs 10.9 miles of a new Bridge at a cost of $10 million, all of which was raised through the issuance of...
Mixing Compute for the cost of goods manufactured. The Matis Manufacturing Company manufactures a single product in two producing departments. For the month of April, the cost and production data...
Ledger account analysis; cost of production summary Analyze the information presented in the following general ledger account of Glasgow Inc. which has three departments: Shaping, Forming, and...
Donaldson Bed and Breakfast has six available rooms to rent to tourists visiting Niagara Falls. Guests enjoy a comfortably appointed room with an attached bathroom and the owners provide a hearty...
1. Form a team of three to four people. a. At least one person needs to be working at a company 2. Identify one or more areas in the company that is using any aspect of quantitative decision making...
Consider Problem 13-18 involving Thomas Martin. Suggest when, if at all, the old should be replaced with the new, if the values for the old machine are as follows. The old machine retains only 70% of...
Problem 3.5 (4 points). We will prove, in steps, that rank (L) = rank(LT) for any LE Rnxm (a) Prove that rank (L) = rank (LTL). (Hint: use Problem 3.4.) (b) Use part (a) to deduce that that rank(L) =...

5. When income is $1,000, the level of consumption spending is equal to $850. When income rises...

Question:

Step by Step Answer:

Macroeconomics In Modules

Students also viewed these Business questions