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What does the amount of consumption in an economy depend on A. Inversely on the level of disposable income B. Directly on the level of disposable income C. Inversely on the level of saving?
level of saving
What can households do with their personal disposable income?
They can either spend it (consumption) or they can put it into their bank account (saving)
How could weistinguish between average propensity to consume from marginal propensity to consume?
The average propensity to consume is the fraction of total disposable income that households spend on consumption (as opposed to saving for example) whereas marginal propensity to consume is the additional consumption that results from an additional dollar of disposable income.
What Income not used for consumption is?
Saving
What is income not used for consumption called?
Saving
What does the amount of consumption in an economy depend on A. Inversely on the level of disposable income B. Directly on the level of disposable income C. Inversely on the level of saving?
level of saving
What can households do with their personal disposable income?
They can either spend it (consumption) or they can put it into their bank account (saving)
How could weistinguish between average propensity to consume from marginal propensity to consume?
The average propensity to consume is the fraction of total disposable income that households spend on consumption (as opposed to saving for example) whereas marginal propensity to consume is the additional consumption that results from an additional dollar of disposable income.
What is the saving rate?
the proportion of disposable income that is saved
Which of the following actions does not promote capital deepening?
saving less and spending more of one's disposable income
Where can one find disposable income?
Disposable income is defined to be income that is available for spending and saving after all taxes have been accounted for. Therefore, disposable income is a result of any income in a general sense. One needs to have a source of income such as a job to have more disposable income.
What Income not used for consumption is?
Saving
What is income not used for consumption called?
Saving
What is Income not spent on current consumption or taxes is?
saving
What does not promote capital deepening?
saving less and spending more of one's disposable income
What is the primary determinant of the level of consumption and saving in the economy?
the level of income
What is rationale of saving decision?
According to the law of economics, Income is a function of savings and consumption. Saving decision by an individual helps to maintain resources for future consumption whenever he feels the demand to.
