Table: Disposable Income and Consumption Disposable Income (in Billions) $0 200 400 600 800 1,000 Consumer Spending (in Billions) $100 220 340 460 580 700 $100. $120. $0. $200.
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Suppose you have the following information about a fictitious economy. Assume there are no errors in the economy. Disposable Income and Consumption: Disposable Income (dollars) Consumption (dollars) 54000 8000 71000 76000 78000 24000 25000 32000 32000 40000 39000. Please enter your answers as whole numbers. In part b, round your answers to the nearest whole number. Instructions: In parts a
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A certain economy's consumption function is given by the equation C(x) = 0.75x + 5 where C(x) is the personal consumption expenditure in billions of dollars and x is the disposable personal income in billions of dollars. Find C(0), C(50), and C(100). a. C(0) = 5, C(50) = 80, C(100) = 42.5 b. C(0) = 42.5, C(50) = 80, C(100) = 5 c. C(0) = 42.5, C(50) = 5, C(100) = 80 d. C(0) = 5, C(50) = 42.5, C(100) = 80 e. C(0) = 80, C(50) = 42.5, C(100) = 5
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The accompanying table presents hypothetical data on aggregate consumption expenditure and disposable income in millions of dollars over five years. Year Disposable Income (In millions) Consumption expenditure (In millions) 2013 200 175 2014 225 193.75 2015 280 235 2016 325 268.75 2017 300 250 a. What is the marginal propensity to consume (MPC)? MPC: b. What is the marginal propensity to save (MPS)?
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