# Econ 201 Assignment 4 This assignment is based on chapters 30 and 31. The homework is worth 5 points Match the following concepts and the definitions. One concept shares more

Econ 201 Assignment 4 This assignment is based on chapters 30 and 31. The homework is worth 5 points Match the following concepts and the definitions. One concept shares more than one definition. 1) The increase in personal consumption caused by an increase in disposable income by \$1 2) The increase in personal saving caused by an increase in disposable income by \$1 3) Decreases as disposable income increases 4) Increases as disposable income increases 5) As disposable income increases, it does not change 6) 1 – MPC 7) 1 – APC 8) 1 – MPS 9) 1 – APS 10) Aggregate demand is equal to aggregate expenditures MPS, APC, MPC, APS, Equilibrium Fill in the following table Disposable income (DI) C S APC APS MPC MPS 100 90 __ __ __ __ ___ 140 ___ 20 __ __ ___ ___ 180 150 ___ ___ __ ___ ____ 220 ___ 40 ___ ___ ____ ___ Use the table to find the multiplier Equation you need MPC = Change in consumption , MPS = Change in saving, APC = Consumption/DI Change in disposable income Change in DI APS = Saving/DI Multiplier = 1/1-MPC or 1/MPS

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