If the marginal propensity to save increases, what happens to the consumption function?
Question:
If the marginal propensity to save increases, what happens to the consumption function?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
As MPS increases ...View the full answer
Answered By
Jehal Shah
I believe everyone should try to be strong at logic and have good reading habit. Because If you possess these two skills, no matter what difficult situation is, you will definitely find a perfect solution out of it. While logical ability gives you to understand complex problems and concepts quite easily, reading habit gives you an open mind and holistic approach to see much bigger picture.
So guys, I always try to explain any concept keeping these two points in my mind. So that you will never forget any more importantly get bored.
Last but not the least, I am finance enthusiast. Big fan of Warren buffet for long term focus investing approach. On the same side derivatives is the segment I possess expertise.
If you have any finacne related doubt, do reach me out.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Suppose that the marginal propensity to save is and that consumption is $6 trillion when disposable income is $0. Find the national consumption function. ds 0.2 - V3y + 7 dy
-
What would the multiplier be if the marginal propensity to consume was a. 1/3? b. 1/2? c. 3/4?
-
The multiplier will increase if the marginal propensity to consume ______ or the marginal tax rate ______. A. Increases; decreases B. Increases; increases C. Decreases; increases D. Decreases;...
-
For seven? years, France Corporation has been owned entirely by Steve and Maryssa? who are husband and wife? Steve and Maryssa have a $183,000 basis in their jointly owned France stock. The France...
-
Consider the experiment of a worker assembling a product. a. Define a random variable that represents the time in minutes required to assemble the product. b. What values may the random variable...
-
The phone calls to a computer software help desk occur at the rate of 5 per minute between 3:00 p.m. and 4:00 p.m. The random variable X is the number of phone calls between 3:10 p.m. and 3:20 p.m.
-
Figure P28.26 shows part of the rotation of an electric motor, during which the magnetic dipole moment of the loop points to the left or has some component to the left. If the entire rotation were...
-
Referring to the Texas Lotto situation in Problem 7-20 suppose the investor has changed his attitude about the investment and wishes to give greater emphasis to the risk of the investment, now the...
-
1. How the singly linked lists can be represented? 2. How the doubly linked list can be represented? 3. What are benefits of ADT? 4. When singly linked list can be represented as circular linked...
-
What would happen to your autonomous consumption if you expected to get a job next week paying 10 times your current salary?
-
Why does a larger marginal propensity to consume lead to a larger multiplier?
-
Create an application using the following names for the solution and project, respectively: Chopkins Solution and Chopkins Project. Save the application in the VB2015\Chap03 folder. Change the form...
-
In this problem we assume the market portfolio is the S&P 500 index. The top 5 stocks in the S&P 500 index, when ranked by market capitalization, make up 22% of the total market capitalization of the...
-
Were the public relations tactics of the food industry ethical? Why or why not? The public relations practices of the food industry were not ethical in this video. The industry used deceptive...
-
Calculate the owners equity: Home purchase price = $ 5 0 0 , 0 0 0 Bank mortgage = $ 4 0 0 , 0 0 0 Personal cash investment = $ 1 0 0 , 0 0 0
-
Read the scenario below, and help me in wriitng direct request to Morgan DiMallano, Pegasus Treasures. The company is located in Toronto at 3852 Eglinton East. The postal code is M1N 7C3. Inquire...
-
Pacific Corporation assembles bicycles by purchasing various suppliers' frames, wheels, and other parts. The assembled bicycles are sold to mass retailers in the western part of the United States....
-
What are the major advantages and disadvantages of quantitative research design?
-
3.16. For a system with non-identical service rates (see Sect. 3.5) and a limit of N jobs in the system (Eq. 3.13), obtain an expression for the mean service time per job, E[Ts], as a function of the...
-
Suppose that the mayor of New York abolishes rent control. A friend of yours who lives in New York complains about the higher apartment rents that result. This friend has never taken an economics...
-
In 1945, the United States experienced a potato surplus. Watch the video clip Farm Journalist Potato Surplus located in the MyLab course available for this text. For there to be a surplus, what must...
-
Suppose you were assigned the task of choosing a price that maximizes economic surplus in a market. What price would you choose? Why?
-
Consider a trip you might take overseas to Japan. Who is the supplier of dollars? Who demands dollars? What is the price of a Japanese currency (YEN)? Do you want the price to be high or low as the...
-
You attended a conference "Future of Taxation Advice" held by these associations and your employer asks for a summary. You are asked to interpret the graph below "Demand Curve for Taxation Advice"....
-
In the following cases, determine whether the employment income is taxable in Canada or not. Case A (3 marks) - Ripinderjit, who was originally born in Windsor Ontario and is a Canadian citizen, now...
Study smarter with the SolutionInn App