Question: An economy's consumption function is depicted in the table below. Disposable Income Y. ($, billions) Consumption C ($, billions) 0 100 100 190 200 280


An economy's consumption function is depicted in the table below. Disposable Income Y. ($, billions) Consumption C ($, billions) 0 100 100 190 200 280 300 370 400 460 500 550 The economy's marginal propensity to save is O A. 0.10. O B. $ -70 billion. O C. 0.90. O D. - 0.233. The average propensity to consume when the disposable income is $500 billion is equal to O A. 1.10. O B. 1.15. O C. 0.90 O D. - 0.100
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
