Suppose that the marginal propensity to consume is 0.8 and that taxes increase by $100. In this case, income will:increase by $500.increase by $400.decrease by $80.decrease by $400.

If the marginal propensity to consume equals 0.75, then a $100 increase in after-tax disposable income leads to a _____ increase in consumption.Group of answer choices$0.75$0.25$100$75$25

Assume the marginal propensity to consume is 0.8. How will a decrease in taxes of $100 billion and a decrease in government spending of $100 billion affect aggregate demand?ResponsesAggregate demand will decrease by $900 billion.Aggregate demand will decrease by $900 billion.Aggregate demand will decrease by $500 billion.Aggregate demand will decrease by $500 billion.Aggregate demand will decrease by $400 billion.Aggregate demand will decrease by $400 billion.Aggregate demand will decrease by $100 billion.Aggregate demand will decrease by $100 billion.Aggregate demand will not change.

Total consumption is $3,680 when income is $4,000, and then total income increases to $5,520 when income rises to $6,000. Calculate the value of the marginal propensity to save.  (State your answer in hundredths, such as 0.21, for example.)

Suppose John’s income increases from Rs.100 to Rs.200. At Rs.100, he saved Rs.10 and spent the remaining on the purchase of goods and services. At Rs.200, he consumes goods and services worth Rs. 160. What is his Marginal Propensity to consume

Assume that the level of autonomous consumption in an economy equals 400, the level of planned investment = 400.Calculate the marginal propensity to consume, if the level of income equals 2,000?Provide answer to one decimal point.