Dissaving occurs when   income is greater than saving income is less than consumption saving is greater than consumption saving is greater than the interest rate

Q: If sales are $60,000 and change in stock is 30% of sales  Calculate Value of output

A: The information being given is:- Sales = $60,000 Also change in stock is 30% of sales so we have:-…

Q: lower interest rates are anticipated to have a positive impact on the economy a. Reduce your…

A: The amount of interest payable every period, expressed as a percentage of the amount loaned,…

Q: Increases in investment spending cause interest rates to increase. a. Ohouseholds will voluntarily…

A: True, because when the interest rate in the economy increases, the opportunity cost of consumption…

Q: shift inwards AN shift outwards move-along upwards A rise in the interest rate would cause v…

A: Economics as a subject is used to study and plan the allocation of scarce resources among humans…

Q: Suppose the level of autonomous investment in an economy is 200 crores. The following saving…

A:

Q: The firm you work for wants you to provide some insight into the investment environment in Mexico…

A: Marginal Revenue Product of Capital (Capital) can be defined in terms of marginal revenue or the…

Q: Looking at business fixed investment, elaborate on why investment is negatively related to the…

A: Investments are negatively related rate of interest.

Q: Dissaving occurs where: saving exceeds consumption. saving exceeds income. income exceeds…

A: Savings refers to the money saved from the income, which is not spent in consumption of goods and…

Q: why increasing government expenditure causes interest rate to rise?

A: Government expenditure is the expenditure by the government to the national economy. Example of the…

Q: Negative real interest rates

A: For a properly functioning economy, inflation and deflation are the least cases. Inflation is…

Q: cts of an increase in disposable income in loanable funds market

A: Effects of an increase in disposable income on loanable funds market Disposable income = income of…

Q: Define disposable income

A: Disposable income, otherwise called dispensable individual income (DPI), is the measure of cash that…

Q: Explain the meaning of comprehensive income and show how a tax on interest income influence people…

A: What is Comprehensive Income?  Comprehensive income is the variety in an organization's net…

Q: Exogenous changes in spending refer to changes in planned spending: O related to changes in output…

A: The aggregate demand curve shows the inverse relationship between the price level and the total…

Q: If a popular TV show on personal finance convincesAmericans to save more for retirement,…

A: The famous show on T.V which inspire public to save (s) more , will result into a rise in savings in…

Q: Discuss the lifecycle income hypothesis theory of consumption and explain its applicability in the…

A: As economies and societies developed, the study of economics got more complicated. Hence, as a…

Q: If the price of your cell phone contract increases from R 700 to R 900 over a period of one year and…

A: "Nominal income does not reflect for changes in the price levels and real income reflect for the…

Q: Disposable income will planned consumption will reduction in tax rates. and with a a) decrease;…

A: Disposable income=Personal income-Income taxes

Q: Demand Supply Supply Demand LOANABLE FUNDS (Billions of dollars) Scenario 1: Individual Retirement…

A: Investment is the source of demand for loanable funds and savings is the source of supply of…

Q: Is the statement below true, false or uncertain? Explain your answer. Note: Include a diagram as…

A: Interest Rate refers to the cost of borrowing or the return on lending of money. It is basically the…

Q: Is the statement below true, false or uncertain? Explain your answer. Note: Include a diagram as…

A: Given information When interest rate is 10% --- Asha is borrower When interest rate is 20% --- Asha…

Q: Suppose the government has promised to pay $100 billion dollars in benefits 10 years from now.…

A: The Future income is discounted at the certain interest rate. The Present value of future income is…

Q: The withdrawal of income from circular flow of income example saving is known as _______

A: According to the given question The circular flow of income in an economy is a concept in the…

Q: Gladys agrees to lend Kay $1,000 for one year at a nominal rate of interest of 5 percent. At the end…

A:

Q: What is the break even investment

A: The relationship that exists between fixed costs, variable costs, and returns can be studied by…

Q: Selim has no income in period 1 (consumption now) and an income of 1800₺ in period 2 (consumption…

A: here we calculate the maximum amount the Salim can borrow in period 1 by the following method as…

Q: Explain the assumption regarding consumers’ behavior in the life-cycle-permanent-income hypothesis…

A: According to the permanent income hypothesis, a consumer spending theory, people will spend money in…

Q: the equilibrium real interest rate in some country is quite low. What could be three possible…

A: Interest rate levels are an element of the availability and demand of credit: a rise within the…

Q: If the savings function of the form S= 200 + (0.2)YD and the marginal income tax rate is  T = 0.2,…

A: The saving function represents the saving with the disposable income, in the mathematical form it is…

Q: What is the relationship between the rising cost of living and low-income communities’ savings in…

A: The cost of living is referred as to the level of price or cost of purchasing goods and services.…

Q: Looking at business fixed investment, explain why investment is negatively related to the interest…

A: An asset or object purchased with the intention of producing income or appreciation is referred to…

Q: Find the saving when the income is 50 and consumption is 60

A: Actually in the question Income level is = 50 Consumption is stated as = 60 Savings needed = ?

Q: ______ Is that type of investment which is not affected by change in the level of output or income

A: According to the given question Investment is basically known as the item of the asset which goal in…

Q: The importance of income in determining savings has persisted since the time of Keynes. Why have…

A: Keynes: It refers to the economic theory under which economy's total spending and its effect are…

Q: A decrease in the interest rate would a. shift investment demand left b. lead to a downward…

A: Equilibrium rate of interest is where the demand curve for investment intersects the total supply…

Q: If Congress instituted an investment tax credit, the interest rate would Select one: a.rise and…

A: a. rise and saving would rise

Q: The interest rate is determined by... a) Financial markets and do not affect the market for goods…

A: Interest rate: - it is the percentage charge on the principal amount by a lender to a borrower.…

Q: c. The equilibrium interest rate is determined where the interest rate is equal to O the amount of…

A: In a market for loanable funds, interest rate act as the price as it is the rate at which lender and…

Q: Selim has no income in period 1 (consumption now) and an income of 1800Ł in period 2 (consumption…

A: Here we find the maximum amount that Salim can borrow to spend in period 1 by the following method…

Q: The above schedule indicates that if the real interest rate is 6 percent, then: Select one: a. $25…

A: Investment: It refers to the money which is invested by the government or private individuals. The…

Q: This person earns $1000 of income today and $2000 income next year. Point C represents his…

A: Given, Current income : $1000.Future income :$2000.

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.