Determine the marginal propensity to consume

Reference no: EM131243978

ADVANCED ANALYSIS

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,

(d ) the average propensity to consume,

(e) the level of saving, and

( f ) the average propensity to save. L

Reference no: EM131243978

Questions Cloud

Provide an opportunity to apply the class concepts : Provide an opportunity to apply the class concepts in the solution of practical problems. Provide you with a common task through which you can learn to be more effective thinkers and problem-solves in your organizations.

Set-up the following problem for solution by the simplex : Set-up the following problem for solution by the Simplex method. Express the linear constraints and objective function. Then, add slack variables that convert each constraint into a linear equation. Finally, set-up the initial Simplex tableau. It..

What does the future hold for your environment : What was that environment like in the past (more than 20 years ago)? Was it affected by the other environments? Next, describe what it's like in today's business world. Lastly, what does the future hold for your environment?

Calculate the predetermined overhead rate based on units : The company's estimated costs, by quarter, for the coming year are given below: - Calculate the predetermined overhead rate based on units and direct labour?

Determine the marginal propensity to consume : Suppose that the linear equation for consumption in a hypothetical economy is C = 40 + .8Y. Also suppose that income (Y ) is $400.

Provide the specific course outcome you have selected : Provide the specific course outcome you've selected. Explain in your own words and 1-2 paragraphs how each outcome relates to what you have learned in class.

Common value of the two populations at that time : What is the common value of the two populations at that time? Either enter an exact expression or round to the nearest whole number.

What are three major markets that exist in foreign markets : What are the three major markets that exist in all foreign markets? Describe the markets and provide examples of each.

Why is the aggregate demand curve downsloping : Distinguish between "real-balances effect" and "wealth effect," as the terms are used in this chapter. How does each relate to the aggregate demand curve?

User Account

All Pages