Essay
Suppose a family's annual disposable income is $8,000 of which it saves $2,000.(a) What is their APC?
(b) If their income rises to $10,000 and they plan to save $2,800, what are their MPS and MPC?
(c) Did the family's APC rise or fall with their increase in income?
Correct Answer:
Verified
(a) APC = .75 ($6,000/$8,000)....View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q15: List six events that could cause a
Q16: Differentiate between the average propensity to consume
Q17: Complete the accompanying table. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6686/.jpg" alt="Complete
Q18: Describe the relationship shown by the investment
Q19: Describe the relationship between the Great Recession
Q21: Define the multiplier.How is it related to
Q22: Most economists regard investment demand as being
Q23: List four factors that could shift the
Q24: Explain the economic impact of an increase
Q25: Use the graphs below to answer the