Given a consumption function, C = co + cY, specified such that the marginal propensity to consume is 75%, how much will C increase by if Y increases by £3bn? a. £0.75bnb. £2,250mc. £2bn d. £1,500m
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Given a consumption function, C = co + cY, specified such that the marginal propensity to consume is 75%, how much will C increase by if Y increases by £3bn?
a. £0.75bn
b. £2,250m
c. £2bn
d. £1,500m
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- Given a consumption function, C = c0 + cY, specified such that the marginal propensity to consume is 75%, how much will C increase by if Y increases by £3bn? a. £0.75bnb. £2,250mc. £2bn d. £1,500mGiven a consumption function, C = c0 + cY, specified such that the marginal propensity to consume is 75%, what will consumption expenditure be if total income is £538bn? a. £584+ c0 bn b. £403.5 + c0 bnc. £538 + c bnd. £403.5 bn140 120 100 80 60 40 40 60 80 100 120 -20 + -40 income: Q 01. Given this diagram of Consumption and Savigns functions, what is the mpc (marginal propensity to consume? 20 20 expenditures, income
- Suppose output and income is equal to 16100, the marginal propensity to consume is 0.65, and autonomous consumption is 675. Calculate total saving for this economy, assuming no public or foreign sector. (Round your answer to the nearest whole number.)Which of the following would be most likely to increase consumption spending? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a A reduction in consumer credit card debt b A drop in stock prices c A higher interest rate d The expectation of lower future pricesGiven the Consumption Function C = 500 + 0.80Y, comppute the marginal propensity to consume and the marginal propensity to save of households?
- Suppose that the linear equation for consumption in a hypothetical economy is C = 40 + .8Y. Also suppose that income (Y ) is $400. Determine (a) the marginal propensity to consume, (b) the marginal propensity to save, (c) the level of consumption, (d ) the average propensity to consume, (e) the level of saving, and ( f ) the average propensity to save.If C = 150 + .6Y and I = 50 then a. how much is autonomous consumption,MPC,MPS,Equilibrium level,investiment multiplier b. If investment increases by 50, using the multiplier you found above what will be the change in Y? What will be the new Y (Y2)?For the consumption function C= 10 + - (a) find the marginal propensity to consume when /= 16; (b) find the marginal propensity to save with / = 16.
- When Ani’s income changes from $400 to $1000, her saving changes from $100 to $580. Ani’s Marginal Propensity to Consume =4.5 You are given the following data concerning Freedonia, a legendary country: (1) Consumption function: C = 200 + 0.8Y (2) Investment function: I = 100 (3) AE = C + I (4) AE = Y a. What is the marginal propensity to consume in Freedonia, and what is the marginal propensity to save? b. Graph equations (3) and (4) and solve for equilibrium income. c. Suppose equation (2) is changed to (2´) I = 110. What is the new equilibrium level of income? By how much does the $10 increase in planned investment change equilib- rium income? What is the value of the multiplier? d. Calculate the saving function for Freedonia. Plot this sav- ing function on a graph with equation (2). Explain why the equilibrium income in this graph must be the same as in part b.Assume taxes are zero and an economy has a consumption function of C = 0.80 (Yd) + $879.06. How much savings take place if disposable income is equal to 3,258.02? Round your answer to two digits after the decimal and include a negative sign if you find negative savings which is borrowing.