the slope of the consumption function is measured by the marginal propensity to save. true or false

induced consumption expenditure = 0.9*Income

marginal propensity to consume = (consumption spending2 - consumption spending1)/( income2 – income1) = ($13.5 - $12) / ($15-$13) = 0.75

MPC or Marginal propensity to consume is also given as, (1-MPS).  Where, MPS is marginal propensity to save.So, if MPS =3/4Then MPC = (1-3/4)                 = 1/4 or 0.25

Y=C+IC=a+cYY=200+0.75Y+6000.25Y=800Y=3200Since this answer doesn't exist, I've decided that it is 8000

(4) 4If MPC = 3/4 or 0.75, multiplier is=1/(1-0.75) = 1/0.25 = 100/25 = 4

Marginal Propensity of national income and AE Curve“An increase in marginal propensity to spend out of national income will cause a parallel shift of AE curve” ,is a FALSE statement. A change...

strict parallelism can be observed only in exceptional cases, as: 1) for most products, the curve will shift in parallel, with attenuation along the X axis, which is provoked by...

The other factor is that influences a households induced consumption is its disposable income, or the greater the level of income. A community's ability yo consume increases with the increase...

D. $1,500

(4) 1/4