Chapter 9: Problem 11
How can the \(A P C\) fall as income rises if the \(M P C\) is constant?
Short Answer
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Key Concepts
These are the key concepts you need to understand to accurately answer the question.
Chapter 9: Problem 11
How can the \(A P C\) fall as income rises if the \(M P C\) is constant?
These are the key concepts you need to understand to accurately answer the question.
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Get started for freeWhat is the level of saving if: a. Disposable income is \(\$ 500\) and consumption is \(\$ 450\) ? b. Disposable income is \(\$ 1,200\) and the \(A P S\) is 9 ? c. The \(M P C\) cquals .9, disposable income rises from \(\$ 800\) to \(\$ 900\), and saving is originally \(\$ 120\) when income equals \(\$ 800\) ?
Explain the difference between a flow variable and a stock variable. Classify each of the following as a stock or a flow: income, wealth, saving, savings, consumption, investment, government expenditures, net exports, GDP.
Draw a diagram and illustrate the effects of the following on the net exports function for the United States: a. The French government imposes restrictions on French imports of U.S. goods. b. The U.S. national income rises. c. Foreign income falls. d. The dollar depreciates on the foreign exchange market. Why is the slope of the \(C+I+G\) function different from the slope of the \(C+I+G+X\) function?
Is the \(A E\) function the same thing as a demand curve? Why or why not?
Why is the slope of the \(C+I+G\) function different from the slope of the \(C+I+G+X\) function?
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