Autonomous consumption is 700 and the marginal propensity to ...

[yoroshambo]

Autonomous consumption is 700 and the marginal propensity to consume is 0.6. Calculate the average propensity to save when disposable income is (a) 10,000, (b) 12,000, and (c) 15,000.
 
  What will be an ideal response?

Question 2

The coordination failure model is based on the possibility of increasing returns to scale
 
  A) both at the aggregate level and at the level of the individual firm.
  B) at the aggregate level, but not at the level of the individual firm.
  C) at the level of the individual firm, but not at the aggregate level.
  D) in future periods, but not in the current period.

[yasmina]

Answer to Question 1

(a) 0.33; (b) 0.342; (c) 0.353

Answer to Question 2

B

[yoroshambo]

Gracias!

[cassie_ragen]

Excellent