If the marginal propensity to consume 075 then a the

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Chapter 24 / Exercise 3
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110.If the marginal propensity to consume = 0.75, then:a.the marginal propensity to save = 0.75.b.the marginal propensity to save = 1.33.c.the marginal propensity to save = 0.20.d.the marginal propensity to save = 0.25.e.since the marginal propensity to save and the marginal propensity to consume are unrelated, we cannot determine the marginal propensity to save from the information given.ANS:D
PTS:1DIF:EasyNAT:BUSPROG: AnalyticTOP:Introducing Classical Theory and the Keynesian RevolutionKEY:Bloom’s: KnowledgeExhibit 8-2 Consumption function111.As shown in Exhibit 8-2, autonomous consumption is:
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Chapter 24 / Exercise 3
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PTS:1DIF:EasyNAT:BUSPROG: AnalyticTOP:Introducing Classical Theory and the Keynesian RevolutionKEY:Bloom’s: Comprehension112.As shown in Exhibit 8-2, saving occurs:
PTS:1DIF:ModerateNAT:BUSPROG: AnalyticTOP:Introducing Classical Theory and the Keynesian RevolutionKEY:Bloom’s: Comprehension113.As shown in Exhibit 8-2, the marginal propensity to consume (MPC) is:
PTS:1DIF:ModerateNAT:BUSPROG: AnalyticTOP:Introducing Classical Theory and the Keynesian RevolutionKEY:Bloom’s: Comprehension114.As shown in Exhibit 8-2, the marginal propensity to save (MPS) is:a.0.25.c.0.75.b.0.50.d.0.90.ANS:B
PTS:1DIF:EasyNAT:BUSPROG: AnalyticTOP:Introducing Classical Theory and the Keynesian RevolutionKEY:Bloom’s: ComprehensionExhibit 8-3 Disposable income and consumption dataDisposableincomeConsumptionSavingMarginal propensity toconsume (MPC)Marginal propensity tosave (MPS)0$100100175200250300325400400500475600550Note: All amounts are in billions of dollars per year.115.As shown in Exhibit 8-3, autonomous consumption is:
PTS:1DIF:ModerateNAT:BUSPROG: Analytic
TOP:Introducing Classical Theory and the Keynesian RevolutionKEY:Bloom’s: Comprehension116.As shown in Exhibit 8-3, if disposable income is $100 billion, saving is:
PTS:1DIF:EasyNAT:BUSPROG: AnalyticTOP:Introducing Classical Theory and the Keynesian RevolutionKEY:Bloom’s: Comprehension

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