Question: If the consumption function is C = 300 + 2Y 2 /1 + Y calculate MPC and MPS when Y = 36 and give an

If the consumption function is
C = 300 + 2Y2/1 + Y
calculate MPC and MPS when Y = 36 and give an interpretation of these results.

Step by Step Solution

★★★★★

3.44 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

dc dy MPC 1Yx4Y3002yx1 2y 4Y300 1x 11 ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Economics Business Questions!

Q:

If the consumption function is C = 50 + 2Y calculate MPC and MPS when Y = 36 and give an interpretation of these results.

Q:

If the consumption function is C = 0.02Y 2 + 0.1Y + 25 find the value of Y when MPS = 0.38.

Q:

If the consumption function is given by C = 0.7 Y + 40 state the values of (a) autonomous consumption; (b) marginal propensity to consume. Transpose this formula to express Y in terms of C and hence...

Q:

Fill in the blanks using the number that corresponds to the correct word or phrase in the word bank below: 1. downward 2. Movement along 3. $700 4. upward 5. $100 6. 1 7. Marginal propensity to...

Q:

.. a good explanations on each question please 9. The consumption function shows the relationship between consumption and: Interest rates. Saving. Price level changes. Disposable income 10. At the...

Q:

Econ assignment. 20. The marginal propensity to consume is: a. the change in disposable income divided by the change in consumption. b.consumption spending divided by disposable income. c. disposable...

Q:

(LAST) (FIRST) HW #13, PART 1 A. Using the consumption function C = 60 + (9/10) Ya, complete the following table. All figures are in billions HW #13, GRAPH SET I of dollars. Note that the MPC and MPS...

Q:

Help in answering all the questions below. Kindly include explanations in your answers. 1. Calculate GDP loss if equilibrium level of GDP is $6,000, unemployment rate 8.5%, and the MPC is 0.90. a)...

Q:

1. Categories of expenditures Kenji and Lucia Murphy live in Swarthmore, PA. Lucia's father, Paolo, lives in Sweden. For each of the following transactions, identify whether it is included in the...

Q:

1. Categories of expenditures Kenji and Lucia Murphy live in Swarthmore, PA. Lucia's father, Paolo, lives in Sweden. For each of the following transactions, identify whether it is included in the...

Q:

Deloris, a single taxpayer, operated a manufacturing business as a S corporation in which she owned 100% of the stock. Information related to the business and Deloris is presented below. Qualified...

Q:

For a business, what are the advantages of a note receivable in comparison to an account receivable?

Q:

Why do male workers in general earn more than female workers?

Q:

How can individual savers use FIs to reduce the transaction costs of investing in financial assets? LO 1.2

Q:

Table 9 contains the state population and the number of licensed drivers in the state (both in millions) for the most populous states in 2014. The regression model for this data is y = 0.62x + 0.29...

Q:

Write the equation of a line through each indicated point with the indicated slope. Write the final answer in the form y = mx + b. 2 () :(-3, 2) () 0; (3, 3) m %3D 3'

Q:

In Problem write the interval as an inequality or double inequality. (9, )

Q:

QUESTION 16 The area under the standard normal curve to the right of z equals Q, where Q is a number between 0 and 1. What is the area to the right of -z? O 1-Q OQ OQ O Q-0.5

Q:

critical values Problem Set 4.8: Critical Values Criterion: Explain changes in critical value based on calculations. Instructions: Read the following and answer the questions. The chi-square table....

Q:

a. The cost of a new automobile is $10,000. If the interest rate is 5%, how much would you have to set aside now to provide this sum in five years? b. You have to pay $12,000 a year in school fees at...