This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Define and explain how we calculate the marginal propensity to consume and the marginal propensity ... (Read 189 times)

c0205847

  • Hero Member
  • *****
  • Posts: 531
on: Jun 29, 2018
Define and explain how we calculate the marginal propensity to consume and the marginal propensity to save.
 
  What will be an ideal response?

Question 2

Refer to Figure 7-2. Marginal private benefit is represented by which curve?
 
  A) D2
  B) Supply
  C) D1
  D) All of the above represent marginal private benefit.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

adf223

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jun 29, 2018
Answer to Question 1

The marginal propensity to consume is the proportion of an increase in disposable income that is consumed. In terms of a formula, the marginal propensity to consume, or MPC, can be calculated as C/YD, where  means change in. The marginal propensity to save is the proportion of an increase in disposable income that is saved. In terms of a formula, the marginal propensity to save, or MPS, can be calculated as S/YD.

Answer to Question 2

C


c0205847

  • Member
  • Posts: 531
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

komodo7

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

A graphical representation of the marginal value theorem. A graphical representation of the marginal value theorem.
Calculate the number of sodium ions in 0.375moles of Na2CO3.10H20 Calculate the number of sodium ions in 0.375moles of Na2CO3.10H20
The minimum number of moles of oxygen needed to completely consume 4 moles of C3H8O is ... The minimum number of moles of oxygen needed to completely consume 4 moles of C3H8O is ...
How to calculate the gain and loss gene numbers with low bootstrap of phylogenetic tree? How to calculate the gain and loss gene numbers with low bootstrap of phylogenetic tree?
How to calculate the gain and loss gene numbers with low bootstrap of phylogenetic tree? How to calculate the gain and loss gene numbers with low bootstrap of phylogenetic tree?
How to calculate the gain and loss gene numbers with low bootstrap of phylogenetic tree? How to calculate the gain and loss gene numbers with low bootstrap of phylogenetic tree?
Video: Structures that affect circulation - heart and MABP

For a complete list of videos, visit our video library