21. If your marginal propensity to consume is 0.75 and you get a $10,00 windfall

Question

21. If your marginal propensity to consume is 0.75 and you get a $10,00 windfall, how much do you save? 22. If the spending multiplier is 1.3 and consumer spending increases by SI billion, how much does overall spending go up (including the initial billion)? Cons Spending S50,000 $40,000 $30,000 $20,000 S50,000 Disposable Income 23. In the graph, what does the $20,000 represent on the Y-axis? 24. If you have S50,000 in disposable income, how much do you spend? 25. What is the MPC in this graph? 26. If you spend S50,000, how much disposable income do you have? 27. Suppose you discover that you have a rich uncle that wi Draw the appropriate shift in autonomous spending on the graph. ill give you millions in the near future.

Explanation / Answer

22.

Marginal propensity to consume(MPC) is a metric which quantifies induced consumption that occu

C / Y, where C is change in consumption, and Y is change in incomers with an increase in disposable income (income after taxes and transfers).

0.75 = x/10000

Change in consumption is $7500

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.