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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

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