In the country of Marzipana, total consumption in Year 1 was $56, 000 million and in Year 2 was 60, 000 million.It has been observed that each time disposable income changes in this country by $100, consumption changes by $70.Using this information compute the change in disposable income from Year 1 to Year 2.
A) Disposable income increased by $2, 800 million in Year 2.
B) Disposable income decreased by $2, 000 million in Year 2.
C) Disposable income increased by $2, 000 million in Year 2.
D) Disposable income increased by $4, 500 million in Year 2.
E) Disposable income decreased by $2, 600 million in Year 2.
Correct Answer:
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Q6: Identify the correct statement.
A)Autonomous consumption equals saving
Q7: The amount of autonomous consumption in an
Q8: Keynesian economics developed in response to:
A)the Great
Q9: The sum of consumption and saving is
Q10: The 45-degree line used in a consumption
Q12: Dissaving occurs when:
A)disposable income is greater than
Q13: The figure given below represents the saving
Q14: The figure given below represents the saving
Q15: A key assumption of the Keynesian model
Q16: The income net of taxes is called
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