Chapter Checkpoint

Study Plan Problems and Applications

Table 1 shows disposable income and saving in an economy. Use Table 1 to ­answer Problems 1 and 2.

  1. Calculate consumption expenditure at each level of disposable income. Over what range of disposable income is there dissaving? Estimate the level of disposable income at which saving is zero.

    Table 1

    A table shows disposable income and saving in an economy.
  2. Calculate the marginal propensity to consume. If wealth increases ...

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