Documente Academic
Documente Profesional
Documente Cultură
McGraw-Hill/Irwin
Companies, All Rights Reserved
Learning Objectives
5-2
$10,442,020,000,000
$10,446.2 billion
$10.5 trillion
5-3
5-4
Consumption
5-5
Consumption (continued)
5-6
5-7
Disposable Income
Consumption
1,000
1,400
2,000
3,000
4,000
5,000
+ 1000
+ 1000
+ 1000
+ 1000
2,200
3,000
3,800
4,600
+ 800
+ 800
+ 800
+ 800
5-8
5-9
Saving
5-10
Source: Economic Report of the President, 2008, Survey of Current Business, March 2008
2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
5-11
Consumption
APC =
Disposable Income
5-12
5-13
Disposable Income
Consumption Saving
$40,000
$30,000
5-14
Consumption Saving
$40,000
$30,000
APC =
C
DI
30000
=
40000
$10,000
3
=
= .75
4
5-15
Consumption Saving
$40,000
$30,000
APC =
APS =
C
DI
30000
= 40000
S
DI
10000
40000
$10,000
3
=
.75
4
1
= .25
4
5-16
Consumption Saving
$40,000
$30,000
APC =
C
DI
30000
= 40000
$10,000
3
4
= .75
+
APS =
S
DI
10000
40000
1
4
= .25
1.0
2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
5-17
Disposable Income
Consumption
$10,000
Saving
$12,000
5-18
Disposable Income
Consumption
$10,000
$12,000
Saving
2000
5-19
Consumption
$10,000
$12,000
APC = DI
Saving
$12,000
=
$10,000
2000
12
10
= 1.2
5-20
Consumption
$10,000
$12,000
APC =
C
DI
$12,000
= $10,000 =
APS =
S
DI
-$2,000
=
$10,000
Saving
2000
12
10 = 1.2
-2
=
0.2
10
5-21
Consumption
$10,000
$12,000
APC = DI
S
APS =
DI
$12,000
$10,000
Saving
2000
12
10
= 1.2
-2
= $10,000 = 10
= 0.2
-$2,000
1.0
2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
5-22
5-23
5-24
Source: OECD
2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
5-25
MPC
CHANGE in Income
5-26
DI
1998
$30000
$23000
$7000
1999
$40000
$31000
$9000
5-27
Calculating MPC
Change in income
40,000 30,000 = $10,000
Change in consumption
31,000 23,000 = $8,000
Change in Consumption divided by Change in income
8,000/10,000 = .8.
Indicating your MPC is .8 or eighty% of disposable
income.
5-28
Calculating MPS
Change in Disposable Income
40,000 - 30,000 = $10,000
Change in Savings
9,000 7,000 = $2,000
Change in Savings divided by Disposable Income
2,000/10,000 = .2
MPS = .2 or you save 20% of Disposable Income
5-29
5-30
The
5-31
5-32
5-33
IC = C AC
5-34
5-35
5-36
Source: www.bea.gov
2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
5-37
Disposable Income
Credit Availability
Stock of Liquid Assets (in the hands of consumers)
Stock of Durable Goods (in the hands of consumers)
Keeping up with the Jones's
Consumer Expectations
5-38
5-39
5-40
5-41
Mottos:
5-42
5-43
5-44
Total Saving
5-45
5-46
5-47