Advanced analysis) Assume the following consumption schedule: C = 20 + 0.9Y, where C is consumption and Y is disposable income. At a(n) $1,200 level of disposable income, the level of saving is
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Advanced analysis) Assume the following consumption schedule: C = 20 + 0.9Y, where C is consumption and Y is disposable income. At a(n) $1,200 level of disposable income, the level of saving is
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- Consumption function C = 32 +0.8 Y. a. Create saving function b. How much is consumption when saving = 0 c. How much income when the savings are 20Assume the following consumption schedule: C = 20 + 0.9Y, where C is consumption and Y is disposable income. At a(n) $1,000 level of disposable income, the level of saving is $80. $920. $180. $18.Scenario 2: An investment tax credit effectively lowers the tax bill of any firm that purchases new capital in the relevant time period. Suppose the government repeals a previously existing investment tax credit. Shift the appropriate curve on the graph to reflect this change. The repeal of the previously existing tax credit causes the interest rate to _____ and the level of saving to _______
- Assume an intertemporal budget constraint that shows how consumption can be traded off between two periods, t and t+1. Assume the consumer can save and borrow at the same interest rate of 10%. Assume the consumer collects income of $100 in each period. To gain an extra $10 dollars in period t+1, what must the consumer give up in period t? 11 10 1 10If Evan's income is reduced to zero after he loses his job, his consumption will be ________ and his saving will be ________. a.greater than zero; less than zero b.greater than zero; greater than zero c.less than zero; greater than zero d.less than zero; less than zeroI consumed all my income at every level of income.Draw my consumption and saving function.What are my MPC and MPS? Explain why it must always be true that MPC+MPS equal to 1?
- Question 4 : Refer to the information provided in table below to answer the questions that follow. Y C S 0 100 180 190 a. Find the consumption, if the consumption function is: C= 120 +0.2Y. b. Find aggregate saving. c. Illustrate that by graph from the information provided in table.Q4) Refer to the information provided in table below to answer the questions that follow. Y C S 0 100 180 190 a. Find the consumption, if the consumption function is: C= 120 +0.2Y. b. Find aggregate saving. c. Illustrate that by graph from the information provided in table.Q4) Refer to the information provided in table below to answer the questions that follow. Y C S 0 100 180 190 1. Find the consumption, if the consumption function is: C= 120 +0.2Y. 2. Find aggregate saving. 3. Illustrate that by graph from the information provided in table.
- which of the following occurs when disposable income is zero? Select one: a. consumption is negative b. consumption must be zero c. none of the given options d. saving must be zeroFrom the information above, calculate the level of consumption and saving that occurs at the equilibrium level of income.What is the level of saving if: The MPC equals .9, disposable income rises from $ 800 to $ 900, and saving is originally $ 120 when income equals $ 800?