Use the following to answer questions 9-10: Consumption (billions) 120 100 80 60 40 20 0...

 

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Use the following to answer questions 9-10: Consumption (billions) 120 100 80 60 40 20 0 20 40 60 80 100 120 Income (billions) 9. The above figure suggests that: A) consumption would be $60 billion even if income were zero. B) saving is zero at the $120 billion income level. C) as income increases, consumption decreases as a percentage of income. D) as income increases, consumption decreases absolutely 10. Refer to the above figure. If the relevant saving schedule were constructed: A) saving would be minus $20 billion at the zero level of income. B) aggregate saving would be $60 at the $60 billion level of income. C) its slope would be 1/2. D) it would slope downward and to the right Use the following to answer questions 1-3: Answer the next question(s) on the basis of the following data for a hypothetical economy. Disposable income $0 50 100 150 200 Saving $-10 0 10 20 30 1. Refer to the above data. The marginal propensity to consume is A) 80. B) 75 C) 20. D) 25. 2. Refer to the above data. At the $100 level of income, the average propensity to save is A) 10. B) 20 C) 25. D) 90 3. Refer to the above data. If plotted on a graph, the slope of the saving schedule would be: A) 80. B) .10 C) 20. D) .15. Use the following to answer questions 9-10: Consumption (billions) 120 100 80 60 40 20 0 20 40 60 80 100 120 Income (billions) 9. The above figure suggests that: A) consumption would be $60 billion even if income were zero. B) saving is zero at the $120 billion income level. C) as income increases, consumption decreases as a percentage of income. D) as income increases, consumption decreases absolutely 10. Refer to the above figure. If the relevant saving schedule were constructed: A) saving would be minus $20 billion at the zero level of income. B) aggregate saving would be $60 at the $60 billion level of income. C) its slope would be 1/2. D) it would slope downward and to the right Use the following to answer questions 1-3: Answer the next question(s) on the basis of the following data for a hypothetical economy. Disposable income $0 50 100 150 200 Saving $-10 0 10 20 30 1. Refer to the above data. The marginal propensity to consume is A) 80. B) 75 C) 20. D) 25. 2. Refer to the above data. At the $100 level of income, the average propensity to save is A) 10. B) 20 C) 25. D) 90 3. Refer to the above data. If plotted on a graph, the slope of the saving schedule would be: A) 80. B) .10 C) 20. D) .15.

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Lets break down the questions and answers The above figure suggests that A consumption would be 60 b... View the full answer