Suppose that the following individual spends a certain percentage of his income (Y) and saves the rest.
Y | C | S | APC | APS |
---|---|---|---|---|
0 | 600 | -600 | ||
400 | 900 | -500 | 2.25 | -1.25 |
800 | 1200 | |||
1200 | 1500 | |||
1600 | 1800 | |||
2000 | 2100 | |||
2400 | 2400 | |||
2800 | 2700 |
Based on this table, how much consumption occurs when income is $0? $
Y | C | S | APC | APS |
---|---|---|---|---|
0 | 600 | -600 | ||
400 | 900 | -500 | 2.25 | -1.25 |
800 | 1200 | |||
1200 | 1500 | |||
1600 | 1800 | |||
2000 | 2100 | |||
2400 | 2400 | |||
2800 | 2700 |
Based on this table, how much is the marginal propensity to consume (MPC)?
Y | C | S | APC | APS |
---|---|---|---|---|
0 | 600 | -600 | ||
400 | 900 | -500 | 2.25 | -1.25 |
800 | 1200 | |||
1200 | 1500 | |||
1600 | 1800 | |||
2000 | 2100 | |||
2400 | 2400 | |||
2800 | 2700 |
How much is the marginal propensity to save (MPS)?
Fill in the column for total savings (S) at each income level.
Y | C | S |
---|---|---|
0 | 600 | -600 |
400 | 900 | -500 |
800 | 1200 | |
1200 | 1500 | |
1600 | 1800 | |
2000 | 2100 | |
2400 | 2400 | |
2800 | 2700 |
Fill in the column for the average propensity to consume (APC) at each income level. Round answers to two decimal places.
Y | C | S | APC |
---|---|---|---|
0 | 600 | -600 | |
400 | 900 | -500 | 2.25 |
800 | 1200 | -400 | |
1200 | 1500 | -300 | |
1600 | 1800 | -200 | |
2000 | 2100 | -100 | |
2400 | 2400 | 0 | |
2800 | 2700 | 100 |
Fill in the column for the average propensity to save (APS) at each income level. Round answers to two decimal places.
Y | C | S | APC | APS |
---|---|---|---|---|
0 | 600 | -600 | ||
400 | 900 | -500 | 2.25 | -1.25 |
800 | 1200 | -400 | 1.50 | |
1200 | 1500 | -300 | 1.25 | |
1600 | 1800 | -200 | 1.13 | |
2000 | 2100 | -100 | 1.05 | |
2400 | 2400 | 0 | 1.00 | |
2800 | 2700 | 100 | 0.96 |