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In: Economics

Assume that autonomous consumption = 100, and the marginal propensity to consume = 80%.         At what...

Assume that autonomous consumption = 100, and the marginal propensity to consume = 80%.
        At what level of disposable income will savings = 0?
  
                


6. If actual investment is higher than planned investment, what is happening to business inventories?   
     
          Inventories are growing
          Inventories are shrinking
          Inventories are holding steady
          It depends upon where we are in the busienss cycle

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Expert Solution

Rahul Sunny answered 2 years ago
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