Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An economy sees consumption increase by $2,763 million when disposable income increases by $4,539. Assuming the marginal propensity to consume remains constant, what is the

An economy sees consumption increase by $2,763 million when disposable income increases by $4,539. Assuming the marginal propensity to consume remains constant, what is the marginal propensity to save? Please round to the closest two decimal places.

If the MPC is equal to 0.72, then a $5,778 increase in disposable income will increase savings by what amount? Please round to two decimal places if needed.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business A Changing World

Authors: O. C. Ferrell, Geoffrey Hirt, Linda Ferrell

10th edition

1259179397, 978-1259179396

More Books

Students also viewed these Economics questions

Question

What is the doctrine of caveat emptor?

Answered: 1 week ago

Question

4 What is specific in constructivist approach to group coaching?

Answered: 1 week ago

Question

2. What do the others in the network want to achieve?

Answered: 1 week ago

Question

1. What do I want to achieve?

Answered: 1 week ago