Question : 1. From the information pages 179 –181, in 2013 what : 1569826
1. From the information on pages 179 –181, in 2013 what was
(a) The APC?
(b) The APS?
(c) The MPC?
(d) The MPS?
2.According to the News on page 184, by how much did
(a) Disposable income increase?
(b) Consumption increase?
(c) Savings increase?
(d) What is the MPC?
(e) What is the MPS?
(f) What is the APC?
3. On the accompanying graph, draw the consumption function C = $300 + 0.50YD.
(a) At what level of income do households begin to save? Designate that point on the graph with the letter A.
(b) By how much does consumption increase when income rises $100 beyond point A? Designate this new level of consumption with point B.
(c) Illustrate the impact on consumption of the change in consumer confidence described in the News on page 185.
4.Illustrate on the following two graphs the impact of increased consumer confidence.
What direction did
(a) The consumption function shift?
(b) AD shift?
5. If every $1,000 increase in the real price of homes adds 7 cents to annual consumer spending (the “wealth effect”), by how much did consumption decline when home prices fell by $2 trillion in 2006–2008?(LO 09-04)