1. consumption is the same type of concept as the monthly deposit. T or F 2. sup
ID: 2496414 • Letter: 1
Question
1. consumption is the same type of concept as the monthly deposit.
T or F
2. suppose Frances gets a sales bonus at her place of work that gives her an extra $400 of disposable income. She choose to spend $300 and save the remaining $100.
From this, you can tell that Frances's marginal propensity to consume(MPC) is _____ (0.10/0.75//0.25/0.30), and her marginal propensity to save (MPS) is ____. (0.30/0.10/0.75/0.25)
Mathematically, it must always be true that: saving= disposable income - consumption
Therefore, it must always be true that: ___(1+MPC/1-MPC/MPC)
3.
Explanation / Answer
1. False
2. suppose Frances gets a sales bonus at her place of work that gives her an extra $400 of disposable income. She choose to spend $300 and save the remaining $100.
From this, you can tell that Frances's marginal propensity to consume(MPC) is 0.75 and her marginal propensity to save (MPS) is 0.25.
Mathematically, it must always be true that: saving= disposable income - consumption
Therefore, it must always be true that: 1-MPC
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