Given the consumption function C = $758 + 0.65 x Y, an increase in disposable income from %3D $7,640 to $9,080 will cause saving to increase by: O $1,080 O $1,440 $2,420 $936 $504
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- Given the consumption function C = $758 + 0.75 x Y, an increase in disposable income from $7,640 to $9,080 will cause consumption to increase by: O $360 O $800 O $1,080 $1,440 O $7,568Brian lives in San Diego and runs a business that sells guitars. In an average year, he receives $733,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $433,000; he also pays wages and utility bills totaling $257,000. He ovwns his showroom; if he chooses to rent it out, he vill receive $13,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Brian does not operate this guitar business, he can vork as a paralegal, receive an annual salary of $23,000 vith no additional monetary costs, and rent out his showroom at the $13,000 per year rate. No other costs are incurred in running this guitar business. Identify each of Brian's costs in the following table as either an implicit cost or an explicit cost of selling guitars. Implicit Cost Explicit Cost The vholesale cost for the guitars that Brian pays the manufacturer The salary Brian could earn if he worked as a paralegal The vages and utility…Which of the following is correct? For every additional dollar in Lifetime_value, Incore is expected to increase by $0.042 For every additional dollar in Lifetime_value, Income is expected to decrease by $0.042 For every additional dollar in Income, Lifetime_value is expected to decrease by $0.042 For every additional dollar in Income, Lifetime_value ($) is expected to increase by $0.042
- If Nathan received an $800 bonus and his MPC is 0.75, his consumption rises by $. and his saving rises by $___ O 600; 200 O 800; 250 O 400; 250 O 825; 125If C = 32 + 0.90Y, how much would an individual save when income is 953? Select one: O a. 63.30 О Б.-825.7О О с. 889.70 O d. 825.70(2. B) Elaborate the saving function with the proper diagram to support your answer
- If consumers spend of a change in their disposable income, then a tax increase of $100 would lower saving by $40. O 20 percent 40 percent O 60 percent O 80 percent 70 percentDraw the cash flow diagram with your solution.In a certain department store, the monthly salary of a saleslady is partly constant and partly varies with her sales for the month. When the value of her sales for the month is P10,000, her salary for the month is P900. When her salary for the month goes up to P12,000, her monthly salary becomes P1,000. What must be the value of her sales for the month so that her salary for the month will be P2,000?The Fischer-Tropsch (F-T) process was developed in Germany in 1923 to convert synthesis gas (i.e., a mixture of hydrogen and carbon monoxide) into liquid with some gaseous hydrocarbons. Interestingly, the F-T process was used in World War II to make gasoline and other fuels. The U.S. military can save one billion gallons per year of foreign oil by blending its jet fuel with F-T products. If the government expects inflation to average 3% per year, what is the equivalent uniform annual savings in fuel? The government's MARR is 7% per year, the study period is 40 years, and one gallon of jet fuel costs $2.80. The AW is $_______billion.
- Your salary was deposited into your saving account on 30 April but you planned to spend the money in May. On 15 May, you went to a shopping mall and saw a Nike backpack which costs RM180 and a pair of Adidas shoes which costs RM220. You bought only the backpack as you needed to keep some money for use in a contingency. At the same time, you did not spend all your money as you want to hold some money ready for any investment opportunities which might arise in the future. Before you left the mall, a grocery store accepted your RM10.50 in exchange for sandwich and coffee. From the paragraph, find the evidence for: i) Money functioning as a medium of exchange. ii) Money functioning as a unit of account. iii) Money functioning as a store of value. iv) Money demand for transaction motive. v) Money demand for speculation motive. vi) Money demandSally will eam S33,000 this year and $42,000 next year. The real interest rate is 25% between this year and next year; she can borrow or save at this rate. She has no wealth at the start of this year and plans to finish next year having consumed everything she possibly can. She would like to consume the same amount this year as next year. How much should Sally save (or borrow) this year? save $4500 O save $4000 O borrow $4500 O borrow $4000A consumer's income in the current period is y = 100 and income in the future period is y'= 120. He or she pays lump-sum taxes t=20 in the current period and t'= 10 in the future period. The real interest rate is 0.1, or 10%, per period. (a) Determine what the consumer's optimal current-period and future-period consump tions are, and what optimal saving is, and show this in a diagram with the consumer's budget constraint and indifference curves. Is the consumer a lender or a borrower? (b) Now suppose that instead of y = 100 the consumer has y = 140 Again, determine optimal consumption in the current and future periods and optimal saving, and show this in a dia gram. Is the consumer a lender or a borrower? (c) Explain the differences in your results be tween parts (a) and (b).