The multiple chocie for the drop downs are 1st drop down- .80,.14,.20,.56 2nd dr
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Question
The multiple chocie for the drop downs are 1st drop down- .80,.14,.20,.56 2nd drop down- .80,.14,.56, .20 3rd drop down- consumption - savings, savings - consumption, consumption + savings. 4th drop down- MPC-MPS, MPC+MPS, MPS-MPC
LtonoIC THStaBllity: A Critique of the Self-Regulating Econon Graded Assignment | Read Chapter 10 | Back to Assignment Due Sunday 05.01.16 at 11:4 Attempts Average: /3 3. Consumption and saving Suppose Maria gets a sales remaining $140 bonus at her place of work that gives her an extra $700 of disposable income. She chooses to spend $560 and save the From this, you can tell that Maria's marginal propensity to consume (MPC) is a's marginal propensity to consume (MPC) is- and her marginal propensity to save (MPS) is , and her marginal propensity to save (MPS) is Mathematically, it must always be true that: Disposable Income Therefore, it must also be true that: Grade It Now Save & ContinueExplanation / Answer
MPC = Change in C / Change in Y => 560 / 700 = 0.80 MPS = Change in Savings . Change in Y => 140/700 = .20 Disposable Income = consumption + savings. Disposable Income is after tax income which is spent on consumption and savings only. MPC+MPS = 1 ( 0.80 + 0.20 = 1)