12 63. Fatima's disposable income increases by $1000, and she spends $600 of it. Fatima's a. MPS is 0.6 and her MPC is 0.6. O b. MPS is 0.3 and her MPC is 0.6. O. MPS is 0.4 and her MPC is 0.4. O d. MPS is 0.4 and her MPC is 0.6.
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- If consumption expenditures are $1800 million, gross investment is $450 million, imports are $350 million, exports are $180 million, government expenditure on goods and services is $120 million, and government transfer payments are $180 million and net taxes are $250 million; a) How much is the disposable income? b) Calculate the national savings.Only typed answer Holly's break-even level of income where her consumption equals disposable income is $980 and her MPS is 0.17. If her actual disposable income is $1,337, her level of consumption spending must be $What is the equation for private disposable income?a. Y + NFP + INT – Tb. T – TR – INT c. Y + NFP + INT – T – C d. T – TR – INT – G 2. Suppose your favorite economics professor is from Germany. The value of his teaching service counts towards (choose all that apply)a. U.S. GDPb. U.S. GNPc. German GDPd. German GNP
- 3. If taxes increase, then: a. disposable income decreases b. disposable income increases c. consumption increases d. private savings increaseThe nation's disposable income increases by 400 billion in as a result consumer spending increases by 220 billion therefore the MPC equals what1. Calculate private household savings. Show your work. 2. Calculate net investment. Did the capital stock for this economy increase, decrease, or not change for the year?
- 1.If a person income was 1560 Rial and his new income is 2250 Rial. His old consumption was 840 and new consumption is 1350. Please calculate the MPC and MPS.Use the data provided in the consumption schedule below for the nation of Nevets to answer the following questions. Disposable income (Billions of 2012 dollars) Consumption Expenditure (billions of 2012 dollars) 0 90 100 160 200 230 300 300 400 370 500 420 Which of the following is a CORRECT statement? Explain why.1. There are dis-savings at income levels of 400 and 500 billion dollars.2. The break-even level of income is 400 billion dollars. 3. Savings of 30 billion occurs at an income level of 200 billion dollarsSuppose GDP in this country is $480 million. National Income Account Value (Millions of dollars) Government Purchases (GG) 150 Taxes minus Transfer Payments (TT) 180 Consumption (CC) 225 Investment (II) 105 Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private SavingPrivate Saving = (YTI, TG, YCT) = = ?million Public SavingPublic Saving = = (CT, TG, YCT, YTI) = = $million
- In 2018, Kendall Ford, an automobile dealership, spent $20,000 on a new car lift for itsrepair shop, $2,000 on a new copy machine for its sales division, and $600,000 on FordMotor company stock. Unsold cars and trucks were valued at $400,000 on January 1, 2018and unsold cars and trucks were valued at $900,000 on December 31, 2018. What isKendall Ford's total investment spending in 2018?F) $1,022,000 G) $522,000 H) $22,000 J) $322,000 Could you please explain a little about the time January 1, 2018 and December 31 2018. Does the time zone affect any component of GPD? Thanks in advanced.farmer grows a bushel of wheat and sells it to a Miller for $20.00. The Miller turns the wheat into flour and then sells it to a Baker for $25.00. The Baker uses the flour to bake bread and sells the bread to a Musician for $40.00. The Musician eats the bread. The Musician, also grows pumpkins in his backyard garden to feed his family.a. What is the valued added by each person?b. Should the pumpkins be included in GDP? Explain your answer.c. Why does GDP not include in goods that are resold?d. Why is it desirable for a country to have a large GDP?1 a)What is the value added definition of GDP? What is meant by value added? b) Suppose that in a given year, a company spends € 400 million on intermediate goods, €800 million on wages of employees with no other expenses and makes total sales worth of € 1600 million. What is the value added of this company? c) The government wants to increase absolute savings and successfully incentivizes the people to save more (saving rate goes up). Show is a graph, what happens to equilibrium output. How could increase in savings lead to a paradox. 2.) a) What are the elements within autonomous spending? State the formula for the multiplier b)In the graph below, draw the demand function (Z) including autonomous expenditure. Label the area representing autonomous spending. Add the value of equilibrium output that you calculated in part c. ( images) c)Suppose the following characteristics of an economy: C = 150 + 0.4 YD , I = 270, G = 100, T = 50 Calculate the equilibrium output and mark it…