Q: From the preceding data, you know that the level of saving in the economy last year was $ billion…
A: Consumption function = C = C0 + Cy Where, C = Consumption C0 = Autonomous Consumption Cy = MPC Y =…
Q: If the income level is 120 and total savings for that level is 40 find the average propensity to…
A:
Q: If the marginal propensity to save is low a. The spending multiplier will be reduced b.…
A: In an economy, the marginal propensity to save refers to the amount of additional income that is…
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A: Consumption spending refers to the expenditures made by individuals and households on the purchase…
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A: We know that the sum of the marginal propensity to save and marginal propensity to consume is 1.…
Q: The average propensity to save is 0.39 Calculate saving if income is $650
A: According to the above mentioned question, we have:- APS = 0.39 Income = $650 We have to find saving…
Q: Calculate average propensity to consume if disposable income is $4300 and the consumption level is…
A: According to the above given question, we are given with the following information:- Disposable…
Q: In an economy the value of Marginal propensity to save Is 0.21 Calculate the value of Marginal…
A: Marginal propensity to save (MPS) is the slope of the saving curve. It implies that how much saving…
Q: Find out the value of the multiplier if the MPC is zero?
A: Generally in the given question, MPC is = zero MULTIPLIER = ?
Q: The marginal propensity to save of a certain country is given by S'(x) = 0.5 + 0.4x. Determine the…
A: Marginal propensity to save is the fraction of change in savings and change in income.
Q: The following table shows income (Y) and consumption (C): Y C Calculate: 100 105 125 160 I. Marginal…
A: Y C 100 105 125 110 160 125 200 140 Formula's Used: MPC = ∆C∆Y MPS = ∆S∆Y Y = C +…
Q: An economy is in equilibrium. Calculate the Marginal Propensity to Save from the following: National…
A: "Marginal propensity to consume represents the additional income that a person spends on consumption…
Q: Consider the following function: C=100+0.7Y What is the average consumption when income is 200?…
A: Given information: C = 100 + 0.7Y Y = 200
Q: Calculate the average propensity to consume if consumption is $1800 and the income is $2200
A: The given information is:- Consumption = $1800 Income = $2200 We have to calculate APC
Q: Calculate average propensity to save when it is given that income of household is $715 and the…
A: The information being provided to us is as follows:- Saving expenditure = $100 Income of the…
Q: Calculate the value of income if consumption is $440 and the average propensity to consume Is 0.88
A: The given information is:- Consumption by household = $440 APC = 0.88 We have to calculate the value…
Q: 'Investment multiplier and marginal propensity to consume are directly related to each other'. Give…
A: Introduction- The idea that any increase in public or private investment spending has a more than…
Q: Use the table below to answer the following question. Income Consumption (Dollars) (Dollars)…
A: According to Keynes, consumption is a function of income. MPC or marginal propensity to consume is…
Q: If the marginal propensity to consume is .9, then the marginal propensity to save must be:
A: The consumption is onw of the most important component of the macroeconomics. The average propensity…
Q: The marginal propensity to consume is is .3 find the marginal propensity to save.
A: Given the marginal propensity to consume (MPC) = 0.3 MPS = ?
Q: Consumption 45° H E F Income Refer to the given diagram. The marginal propensity to save is…
A: Marginal propensity to save refers to the additional amount of saving that is done by an individual…
Q: Calculate the value of marginal propensity to save when the change in savings is $350 and the change…
A: # According to the question we need to calculate the value of Marginal propensity to save. We know…
Q: What is the value of MPC if marginal propensity to save is .1.
A: Given the value of marginal propensity to save = 0.1 Now we have to find the value of MPC.
Q: The marginal propensity to save is 0.55 What is the value of Marginal propensity to consume
A: According to the question, we are given the value of Marginal propensity to save as 0.55 This helps…
Q: True or False (Why?): An increase in the money supply tends to decrease expenditures on consumption…
A: To answer whether the statement is true or false.
Q: Calculate income if Average propensity to consume is 0.77 and the consumption is $400
A: The economics as a study is based upon the idea that the societies tend to have a limit to the…
Q: When marginal propensity to consume is 0 the value of investment multiplier will be 1 True/False
A: We are given that the value of Marginal propensity to consume is 0 MPC calculate the change in…
Q: Find MARGINAL PROPENSITY TO SAVE if the value of MPC is 0.61
A: The information given to us is:- Marginal propensity to consume = 0.61 It is the measure which…
Q: Calculate the value of marginal propensity consume if change in consumption is $4000 and the change…
A: The information provided to us is as follows:- Change in consumption = $4000 Change in income =…
Q: The value of Marginal propensity to consume is double the value of Marginal propensity to save.…
A: We are given with the following information:- The value of MPC is double that of MPS I.e MPC = 2MPS…
Q: Calculate average propensity to save if income level is $2300 and savings is $1200
A: According to the above mentioned question, the values given are:- Savings = $1200 Income expenditure…
Q: In an economy the value of the marginal propensity to save is 0.39. calculate the value of MPC
A: # The value of marginal propensity to consume is given by the difference as:- MPC = 1 - MPS
Q: Calculate average propensity to save if savings is $350 and income is $390
A: The given information is as follows:- Savings expenditure is $350 Income is $390 We have to…
Q: If income is $1000 and consumption expenditure is $1200 then find the average propensity to save
A: The provided information are: Income (Y) = $1000 Consumption (C) = $1200
Q: Consider the following functions: C=200+0.7Y What is the marginal propensity to consume?
A: The consumption function can be written as: C = a + bY C= Consumption a= Autonomous consumption b=…
Q: The marginal propensity to consume is a)the average amount of income that is consumed or spent…
A: The measure that depicts in an economy the sensitivity of level of income to the changes occurring…
Q: Choose the correct answer: . If consumption is $25,000 when income is $26,000, and consumption…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: The value of marginal propensity to consume is 0.44 Calculate the value of Marginal propensity to…
A: # We know that the sum of both MPS and MPC is 1 MPS + MPC = 1
Q: Why is investment spending unstable?
A: The investment is the process of spending the money for making more returns from the fir or process…
Q: The marginal propensity to consume is 0.8. Find the investment multipier.
A: Given, The marginal propensity to consume = 0.8
Q: Find the value of marginal propensity to consume if change in income is $220 million and the change…
A: The information being given is:- Change in income = $220 million Change in consumption = $180…
Q: The average propensity to save is 2 times the average propensity to consume Calculate (1) APC (2)…
A: The data presented in the question is:- APS = 2APC We have to calculate APS and APC
Q: If the marginal propensity to save is 0.25, a. The marginal propensity to consume (MPC) is b. The…
A: Marginal propensity to consume (MPC) is defined as the proportion of additional income that a…
Q: If the marginal propensity to consume is 0.75 then what is the marginal propensity to save?
A: Marginal Propensity to Consume:- MPS refers to a proportion of aggregate raise in pay that consumers…
Q: In an economy investment is increased by 1800 billion calculate the change in total income if the…
A: The concept of an investment multiplier states that every increase in public or private investment…
Q: From the information below calculate aggregate demand; Consumption (C) = $200 + 0.6Y…
A: Aggregate demand refers to the total quantity of demand for all finished goods and services produced…
Q: In a closed economy with no government, a £1 billion increase in investment leads to a £5 billion…
A: In a closed economy, any change in consumption or investment will have a significant impact on each…
Q: Find average propensity to save if average propensity to consume is 0.34
A: The data presented in the question is:- Average propensity to consume = 0.34 We need to calculate…
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- Clarice has a utility function: U(Y) = 1000 - (100/Y), where Y is her income. clarice has just graduated from college and has a career choice for her first job of either working as a teacher and earning $40,000 or trying to become a theatre lighting director and earning $70,000 (if there is growth in the demand for theatre) or $20,000 (if there isn't growth in the demand for theatre). there is a 50% probability of growth. a consulting firm guarantees Clarice that it already knows whether there will be growth in the demand for theatre next year. what is the maximum amount Clarice should be willing to pay for this information?. Evaluate whether it violated or justify WARP conditionality: A consumer makes the following choices (when you develop the matrix, show the calculation process for the first row) a. At prices (p1,p2)=($4,$4) the choice was (x1,x2) = (20,4). b. At (p1,p2)=($2,$2) the choice was (x1,x2) = (10,10). c. At (p1,p2)=($2,$4) the choice was (x1,x2) = (10,8).If an indifference curve is a vertical line, does theamount of the good on the y -axis influence theconsumer’s utility?
- The minister of transport released its festive season road accident statistics which shows that the probability of drivers committing an accident is 8% with utility U(H)= squadroot H, where H stands for year income. The minister further claims these festive season road accidents cost the state (in terms of claims lodged) an average of 84 000 per annum. The road accident fund is an insurance scheme providing compulsory indemnity cover to victims of vehicle accidents and taxi drivers. a. Suppose that an average commuter earns 84000 per annum. What is the expected utility of each commuter if the driver decides not to take insurance. b. What is the cost of insurance policy to the road accident fund? c. Due to high accident rates in South Africa during the festive season, the road accident fund has issued a warning to government that the fund will be insolvent soon. Advise the minister on the cost of insurance that can collapse the scheme.Suppose the administration of a University that is located a high-crime urban area mustdecide on a policy to increase policing on its campus. The student population is 10,500 students but iscould increase if crime is reduced. The cost of added policing in terms of additional salary and equipmentis estimated to be $2.4 million per year. Suppose the administration plans to make their decision with thehelp of a benefit cost analysis of the policy. VSL is $11.8 million a. Explain how the concept of Value of a Statistical Life might factor into a benefit cost analysis of thispolicy. b. How many lives would need to be save to justify the added policing costs if only prevented deathswere considered as the policy benefit? c. Suppose it is believed that student enrollment will increase in the future if crime on campus is reduced.Write a formula to calculate the present value of benefits of policing if student enrollment increases by4% each year.Describe the model of optimal distribution of Paul and peter with an appropriate graph.
- George has utility function U (x, y) = min (0.5x, 5y) and income Y = 76. If the value is px = 2 and py = 10. What is the best choice for good x? a. 38.00 b. 56.44 c. 25.33 d. 40.00 e. 18,13 f. 0.00 g. 9.21 h. None of the optionsA decrease in the cost of the flour used to bake bread is most likely toAlexi has a budget of $21 to spend on toaster and breads. He does not directly gain any utility from owining a toaster but for every slice of toasted bread he consumes he gain 2 units of utility, that is if he owns a toaster. Without the toaster, he gain 0 units of utility from consuming plain bread. Suppose the toaster has inferior quality and will break after toasting only 10 slices, then Alexi needs to buy a new one. The current market price for cheap toaster is $5 and the price for a single slice of bread is $1. Assume that Alexi aims to maximize consumer surplus. In a graph, draw total utility as a function of number of toasted slices, assuming that Alexi buys 1 toaster.