Explain the difference between the stock variable and a flow variable in economics with one example of each.

Q: What determines the slope of a consumption function?

A: Consumption, represented as expenditure for utility acquirement. Consumption involves the ultimate…

Q: What is a capital gain, and what role does it play in the arbitrage equation?

A: Arbitrage Equation The arbitrage equation a very important tool in economic analysis that helps…

Q: Give the equation for a linear consumption function?

A: According to the given question Simply we can say that a linear consumption function is an function…

Q: Which of the following should NOT be considered as part of fixed investment? 1. Toyota buys a new…

A: According to the economist investment is such a concept which focuses on the goods production in…

Q: Explain the difference between saving andinvestment as defined by a macroeconomist. Whichof the…

A: Saving and investment are often used interchangeably. But the two terms are different as defined by…

Q: State 3 characteristic of the consumption function ?

A: Consumption function represents the functional relationship between total consumption and gross…

Q: Classify each of the following based on the macroeconomic definitions of saving and investment.…

A: Saving Investment   Neha borrows money to build a new lab for her engineering firm. no…

Q: Define and explain the internal rate of return on a new investment?

A: Internal rate of return or IRR is a measure in economics of  capital budgeting parlance and…

Q: Which of the following is an example of the real flow in the circular flow model of economics? A. A…

A: The interaction and relationship between the households and the business is interpreted by the…

Q: Show how consumption and savings evolve in an economy that starts with a level of capital well above…

A: Solow Growth Model is defined as a model which solely focuses on economic growth of a nation in the…

Q: For each of the following products state if it is a final or intermediate good and explain why? A…

A: Intermediate goods: - Intermediate goods are those goods that are used in the production of other…

Q: Suppose you have 1 million dollars to invest in physical capital (K). The annual return to your…

A: The purpose of investing is to generate income and increase the value of an asset over time. Any…

Q: Describe nonsimple investment?

A: Non simple investment is a type of investment where more than one sign change occurs in the net cash…

Q: What does it mean when talking about full income and price when considering the household…

A: The utility-maximizing choice on the initial budget constraint is M. The dashed horizontal and…

Q: Of means-tested programs and IRA’s, which lower the rate of return on saving?   a. Both…

A: Option (d) is correct.

Q: In evaluating the present value of cultivable land, some economists include the present value of the…

A: Given a specified return rate, the present value of an investment is the current worth of that…

Q: Explain how the income from production is distributed to labor and capital according to the…

A: It shows the division of National income among factors of production. The assumptions made under…

Q: In a finance class, the purchase of stock in a company would tend to be labelled “investment,” but…

A: Investment goods in macroeconomics can be understood as goods that are used either to produce…

Q: importance of stock market

A: Stock market is a collection of market where buying and selling of stocks happen in an economy using…

Q: What is the relationship; remember how economist talk about relationships, between the level of…

A: The equilibrium of the national income including the real GDP and the price level would be…

Q: What is the Net-investment test?

A: Net- investment measures the company's assets and investment like property, software, plants and…

Q: Explain The difference between induced and autonomous investment in economics..

A: According to the given question Investment in economics is considered as a asset or actually an item…

Q: Which of the following is true of saving and investment? a.Saving and investment can never be…

A: a.Saving and investment can never be undertaken together by the same person. This statement is…

Q: Find the value of the change in the stock if the Closing stock is 122 and the Opening stock is 102?…

A: As per the given question, Closing stock is valued at = 122 Opening stock is = 102   We need to…

Q: Define the term Return on Investment?

A: Return on investment measures the performance which is used to evaluate the efficiency of an…

Q: Consider the household model that you have seen in class but now assume that the goal of the…

A: Consumption: It refers to the amount of goods and services people will consume. The more the…

Q: Define the term the concept of return on investment?

A: Return on investment measures the performance which is used to evaluate the efficiency of an…

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: Suppose that society decided to reduce consumption and increase investment. Briefly explain what…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: When does the optimal investment schedule shift?

A: The ideal hazardous investment mix is regardless of wealth, non-capital income, age, and eagerness…

Q: than 250 words

A: An opportunity for investment in any situation exists where there is an option of purchasing…

Q: Illustrate the investment-pool concept, with an example?

A: Investment pools are financial arrangements (excluding pension funds) that consolidate Other…

Q: Explain why the AVC curve is "U shaped"?

A: Step-1 Marginal Cost(MC) is the increment in the total cost(TC) due to a unit increment in the…

Q: How Goods Market will be in Equilibrium according to the saving and investment approach?

A: Aggregate demand is the value of the total goods and services demanded by the whole economy in a…

Q: Consider the following investment opportunity:

A: Since the question you have posted consists of multiple parts, we will answer the first part for…

Q: If the MPC is .75 and disposable income is $100, then

A: Marginal Propensity to Consume ( MPC) refers to the increment in one's consumption expenditure when…

Q: Briefly explain whether each of the following statements is true or false. 7. A decline in total…

A: Solow Swan model explains the growth of output in the long run taking capital accumulation,…

Q: What is the relationship; remember how economist talk about relationships, between the level of…

A: Economics is the study of various economic relationships. Relationship means it shows the connection…