Consider the following economy:(1) C = 1000 + 0.3 (Y - T)(2) I = 700(3) G = 500(4) T = 400What is the marginal propensity to consume?
Question
Solution 1
To find the marginal propensity to consume (MPC), we need to look at the consumption function (C) in the given economy. The consumption function is represented by the equation C = 1000 + 0.3(Y - T), where C is consumption, Y is income, and T is taxes.
The MPC represents the change in consumption fo Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv
Similar Questions
Consider the following economy:(1) C = 1000 + 0.3 (Y - T)(2) I = 700(3) G = 500(4) T = 400What is the marginal propensity to consume?
Consider the following economy:(1) C = 1000 + 0.3 (Y - T)(2) I = 700(3) G = 500(4) T = 400Autonomous spending is:
Consider the following economy:(1) C = 1000 + 0.3 (Y - T)(2) I = 700(3) G = 500(4) T = 400Consumption of equilibrium is:
Write down the equilibrium values for:AD*=Y*=C*=I*=G*=T*=m=Marginal propensity to consume=using this (1) c=1000+0.4(y-t)(2) i=500(3) G=400(4) t=300
Let's consider this economy:(1)AD=C+I (2)C=100+0.8Y (3)I=200 What is the marginal propensity to consume?