Chapter 27 Homework

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

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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

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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
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## 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.

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

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