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You have the following information on personal consumption expenditures (C) and disposable

You have the following information on personal consumption expenditures (C) and disposable income (Yd):

YearCYd

1300400

2500700

a. Compute the marginal propensity to consume.

b. Compute the amount of savings for years 1 and 2.

c. Compute the marginal propensity to save.

90) You are given the following linear consumption function: C = 200 + 0.80Yd. What is the size of the autonomous consumption expenditures and induced expenditures?

91) Briefly explain how capacity utilization rates are used by forecasters.

92) Distinguish between the short-run and long-run factors that affect residential investment.

93) What are the determinants of investment spending?

94) You are given the following information on the various sectors of the economy. Derive the aggregate expenditure function.

C = 100 + 0.75Y

I = 200 + 0.20Y

G = 500

X = 250

M = 100 + 0.10Y

Dec 07 2019 View more View Less

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