Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An economy's consumption function is depicted in the table below. Disposable Income Y. ($, billions) Consumption C ($, billions) 0 100 100 190 200 280

image text in transcribed
image text in transcribed
An economy's consumption function is depicted in the table below. Disposable Income Y. ($, billions) Consumption C ($, billions) 0 100 100 190 200 280 300 370 400 460 500 550 The economy's marginal propensity to save is O A. 0.10. O B. $ -70 billion. O C. 0.90. O D. - 0.233. The average propensity to consume when the disposable income is $500 billion is equal to O A. 1.10. O B. 1.15. O C. 0.90 O D. - 0.100

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

Macroeconomics

Authors: Michael Parkin

10th Edition

013485330X, 978-0134853307

More Books

Students also viewed these Economics questions

Question

What variable is commonly included in a market potential indicator?

Answered: 1 week ago

Question

How might the banks research the market for retail customers?

Answered: 1 week ago

Question

What is your greatest weakness?

Answered: 1 week ago

Question

1. Too understand personal motivation.

Answered: 1 week ago