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The following table is a consumption schedule assume that

The following table is a consumption schedule. Assume that taxes and transfer payments are zero and that all saving is personal saving.

(GDP = DI) C S APC APS

1500 $1540 $_______ 1.027 -.027

1600 1620 _______ 1.013 -.013

1700 1700 _______ _____ _____

1800 1780 _______ .989 .011

1900 1860 _______ .979 .021

2000 1940 _______ _____ _____

2100 2020 _______ .962 .038

2200 2100 _______ _____ _____

Compute saving at each level of disposable income and the missing average propensities to consume and to save.

What is the break-even level of disposable income?

What is the MPC, the MPS?

What is the value of the multiplier in this example? What does it represent? How can it be used?

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Macroeconomics: The following table is a consumption schedule assume that

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