Suppose that in a given year, Total Consumption in the us economy was $ 11,836 b

Question

Suppose that in a given year, Total Consumption in the us economy was $ 11,836 billion, and Total Disposable Incomes was $ 12,501 billion in the same given year. What was the Average Propensity to Save (APS) for this year? Round your answer to 3 decimal places. Include the decimal in your answer Type un only your numeric answer. Do not include any other symbols such as $ or %; or any words such as Selected Answer dollar", "million", etc. tion 2 0 out of 4 points Suppose that in a given year, Total Consumption in the US economy was $ 11,820 billion, and Total Disposable incomes was $ 12,497 billion in the same given year. What was the Average Propensity to Consume (APC) for this year? Round your answer to 3 decimal places. Include the decimal ) in your answer. Type in only your numeric answer. Do not include any other symbols such as soroany words such as "dollar". "million" etc.

Explanation / Answer

APS can be defined as total savings divided by total income = (12501 - 11836)/12501 = 0.053

APC  can be defined as total consumptio divided by total income = 11820/12497 = 0.946

MPC = change in consumption / change in income = (12284-12243)/(12972-12916) = 0.743

Decline of 3% implies 12000 x 3/100 = 3600. Hence it is $3600 billion

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