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The 45-degree line on a graph relating consumption and income shows?

all the points at which consumption and income are equal


What would be the slope of the consumption schedule or line for a given economy?

The slope of the consumption schedule, or line, in an economy represents the marginal propensity to consume (MPC), which measures the change in consumption resulting from a change in income. A steeper slope indicates a higher MPC, meaning consumers are likely to spend a larger portion of any additional income, while a flatter slope suggests a lower MPC, with consumers saving more of their additional income. This slope is crucial for understanding how changes in income levels affect overall consumption and economic activity.


Income not used for consumption is considered as what?

The income that is not used for consumption is called disposable income


What is the difference between consumption and income?

the difference between income and consumption


Income tax schedule for 2010?

Income tax schedule for 2013


Income consumption curve?

income consumption curve is the collection of points of the consumer's equilibrium resulting from varying income.....


What is the 45 degree line in economics?

Its a line lol A guideline used in Keynesian economics in conjunction with the consumption line (to derive saving) and the aggregate expenditures line (to identify Keynesian equilibrium). This guideline forms a 45-degree angle with both the horizontal income axis and the vertical consumption expenditure (or aggregate expenditures) axis in the Keynesian graphical analysis.


If a good is a normal good what will happen to its consumption as income increases?

The definition of a Normal Good is: a good that will increase in consumption as income increases and decrease in consumption as income decreases.


Are consumption and income inversely related or directly related?

Consumption and income are typically directly related, meaning that as income increases, consumption tends to increase as well. This relationship is known as the marginal propensity to consume, which looks at how changes in income impact changes in consumption.


What is Market Consumption Capacity?

Market Consumption Capacity is basically the income of the middle class. (The percentage share of the middle class in consumption/income)


Are consumption and income positively related or are they negatively related?

They are positively, or directly related. An increase in income is associated with an increase in income; a decrease in consumption accompanies a decrease in income.


You consume all your income at every level of income Draw your consumption and saving functions what are your MPC and MPS?

If you consume all your income at every level of income, your consumption function is a straight line at a 45-degree angle from the origin, indicating that consumption equals income (C = Y). In this scenario, your Marginal Propensity to Consume (MPC) is 1, since any additional income is entirely consumed. Consequently, your Marginal Propensity to Save (MPS) is 0, as there is no saving occurring at any income level. The saving function would be a horizontal line at zero, reflecting that savings do not increase regardless of income.