ecs1601 assignment with highlighted accurate answers available

the most important determinant of a households consumption is - ANSdisposable income autonomous consumption expenditures are - ANSnot influenced by disposable income given the data in ex the level of saving at a disposable income of 1200 is - ANS240 at the equilibrium level of real GDP, the MPC equals 1 - ANSfalse the MPC is a relationship between - ANSa change in consumption and a change in income IF a households income rises from 46000 to 6700 and its consumption spending rises from 35800 to 36400 then its - ANSMPC is .86 If a households income falls from 20000 to 17000 and its consumption spending falls from 18000 to 15000 then its - ANSMPS is zero suppose that when disposable income rises from 3 trillion to 3.2 trillion, consumption rises from 2.5 trillion to 2.6 trillion. what is the marginal propensity to save - ANS.5 the marginal propensity to consume is defined as the - ANSfraction of a change in income that is spend on consumption the MPC plus the MPS equals - ANS1 an increase in wealth will - ANSincrease consumption and decrease saving at each level of income a decrease in in the price level will - ANSdecrease consumption because the value of wealth has incresaed a households that expects a decrease in disposable income in the future will - ANSdecrease its current consumption spending the partners in wonderwoods word processing firm spend 12000 on cunouters hoping toean an additional 100 per year - ANSbuy the computers because the rate of return on the computers exceeds 7 percent