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# Disposable income (thousands of dollars) Consumption expenditure (thousands of dollars

### Disposable income (thousands of dollars) Consumption expenditure (thousands of dollars

 Disposable income (thousands of dollars) Consumption expenditure (thousands of dollars) 200 225 300 300 400 375 500 450

103) According to the data in the above table, at what level of disposable income is savings negative?

A) 200

B) 300

C) 400

D) Never because saving cannot be negative.

104) According to the data in the above table, what is the marginal propensity to consume?

A) 75.

B) 100.

C) 0.75.

D) 1.

 Disposable income (dollars) Consumption expenditure (dollars) 0 100 100 180 300 340 500 500 700 660 900 820

105) In the above table, savings are positive when disposable income is greater than

A) zero.

B) \$100.

C) \$300.

D) \$500.

106) In the above table, savings equal zero when disposable income equals

A) 0.

B) \$200.

C) \$300.

D) \$500.

107) In the above table, the marginal propensity to consume equals

A) 0.90.

B) 0.75.

C) 0.80.

D) 0.85.

 Disposable income (billions of dollars) Consumption expenditure (billions of dollars) 400 450 600 600 800 750 1000 900 1200 1050

108) Based upon the above table, if disposable income is \$400 billion, saving equals

A) -\$50 billion.

B) \$0 billion.

C) \$50 billion.

D) \$100 billion.

109) Based upon the above table, saving equals \$100 billion when disposable income equals

A) \$800 billion.

B) \$1000 billion.

C) \$1200 billion.

D) some amount but we need more information to calculate the amount.

110) Based upon the above table, the MPC for the consumption function is

A) increasing as income rises.

B) equal to 1.0 at \$600 billion.

C) constant at 0.75.

D) constant at 0.25.

Abhinav 07-Dec-2019 Get solution