Given the import function, Z = 300 + 2/3Y, which of the following statements is correct? (2) (a) The marginal propensity to save is 1/3; (b) The induced component is 300; (c) 2/3 is the proportion of any income spent on imports; (d) None of the statements is correct
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Q.1.6 Given the import function, Z = 300 + 2/3Y, which of the following statements is
correct?
(2)
(a) The marginal propensity to save is 1/3;
(b) The induced component is 300;
(c) 2/3 is the proportion of any income spent on imports;
(d) None of the statements is correct.
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- Given the import function, Z = 300 + 2/3Y, which of the following statements iscorrect? choose the correct answer(a) The marginal propensity to save is 1/3; (b) The induced component is 300; (c) 2/3 is the proportion of any income spent on imports; (d) None of the statements is correctGiven the import function, Z = 300 + 2/3Y, which of the following statements is correct?(a) The marginal propensity to save is 1/3;(b) The induced component is 300;(c) 2/3 is the proportion of any income spent on imports;(d) None of the statements is correcIf Samantha's income is reduced to zero after she loses her job, her consumption will be ________ and her saving will be ________. Group of answer choices greater than zero; less than zero less than zero; less than zero greater than zero; greater than zero less than zero; greater than zero
- Assume there are 2 people Xavier with a Marginal propensity to consume (MPC) of 80% and Francis with a Marginal Propensity to save (MPS) of 10%. Xavier enjoys life and has a minimum consumption of $10,000 without any income, while Francis is more modest, with a minimum consumption of $7,500 without any income. a. Demonstrate and explain the income expenditure model for Xavier and Francis on separate graphs with income ranging from 0 to $100,000 in $20,000 increments. b. Compare the minimum income levels where savings begins for Xavier and Francis. c. How does the difference in MPC affect the economies for each state? d. If the government decides to take all savings above $2,000, is this fair to Xavier? Francis? e. How might this change their behavior? How is this relevant to discussions about wealth inequality? How are individual choices relevant to wealth inequality?Price of advertising in newspapers and magazines are Rs.5 and Rs.10 respectively. The total budget for advertising is Rs.105. For maximizing the sales, find out the best combination of advertisement in newspapers and magazines by using lagrangian multiplier.2. Public consumption of a country (two sectors) is indicated by the function C = 60 + 0.4Y. Calculate:a. Find the saving function.b. If the investment that occurs is 300, determine the balance national income.c. What is the consumption of the people of the country if the national income is 400.d. How much is the savings of the people of the country if the national income is 400.e. Make a graphical sketch of the consumption and saving functions in one image. Please solve subparts d,e thank u
- If your income increases from $40,000 to $48,000 and your consumption increases from $35,000 to $39,000, your marginal propensity to consume (MPC) isAssume there are no taxes. A household with subsistence level of consumption equal to $200 saves $400 when its income is $1,000. The consumption function (assumed to be linear) of this household is . C = -200 + 0.6*Y C = 200 + 0.4*Y C = -200 + 0.4*Y C = 200 + 0.6*YGiven that the consumption function is: C = 10 + .9Y, at the level of Y = 200, we should expect the level of savings (S) to be Group of answer choices 0. a. none of the other answers are correct. b. .1 c. 10
- If aggretate exppenditure is greater than total income: investment will decrease because such a high level cannot be sustained. planned savings will decrease in line with investment. output will increase to replenish depleted inventories. investment will decrease to run down excessive inventories. there is an error, since the two are same by definitionAssume a consumer has current-period income y = 200, future-period income y′ = 150, current and future taxes t = 40 and t′ = 50, respectively, and faces a market real interest rate of r = 0.05, or 5% per period. The consumer would like to consume according to the following utility function: U (c, c′ ) = ln(c) + ln(c′ ). Show mathematically the lifetime budget constraint for this consumer. Find the optimal consumption in the current and future periods and optimal saving. Suppose that instead of r = 0.05 the interest rate is r = 0.1. Repeat parts (a) and (b). Does the substitution effect or the income effect dominate?For the multiplier to be positive what condition must be satisfied?