Refer to the above diagram. The marginal propensity to consume is: .2. .8. .4. .

Question

Refer to the above diagram. The marginal propensity to consume is: .2. .8. .4. .3. (Advanced analysis) The equation for the above saving schedule is: Yd = -20 + .8 S. Yd= 20 + 2S. S= -20 + .2 Yd. S= 20 + .8 Yd Refer to the above diagram. The average propensity to consume: is greater than 1 at all levels of disposable income above $100. is greater than 1 at all levels of disposable income below $100. is equal to the average propensity to save. cannot be determined from the information given. Planned investment is called an injection because it goes directly to profit levels. comes from the banking system. is greater than consumption. is an addition to the flow of aggregate spending.

Explanation / Answer

10) .8

11) -20+.2Y

12) GREATER THAN 1 IF Y>$100

13) GOES DIRECTLY TO PROFIT LEVELS

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