Chapter 27 Homework

Chapter 27 Homework - 2 are wrong 1 If Sara Thomas...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
2 are wrong 1.  If Sara Thomas' disposable income increases from $4,000 to $4,500 and her level of saving  increases from $200 to $325, it may be concluded that her marginal propensity to: A) Consume is .80 B) Consume is .75 C) Consume is .60 D) Save is .30 2.  If you know that an increase in a household's disposable income from $35,000 to $45,000  leads to an increase in consumption from $30,000 to $38,000, then you can conclude that the: A) Slope of the consumption schedule is .75 B) Average propensity to consume is .8 C) Marginal propensity to save is .25 D) Marginal propensity to consume is .8 3.  Refer to the above data. If disposable income is $550, we would expect consumption to be: A) $430 B) $450 C) $460 D) $470
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4. Refer to the above data. At the $300 level of disposable income: A) The marginal propensity to save is .80 B) The average propensity to consume is .60
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/10/2010 for the course ECON 201 taught by Professor Smith during the Spring '10 term at Bowling Green.

Page1 / 5

Chapter 27 Homework - 2 are wrong 1 If Sara Thomas...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online