Answered: Make sure to show your work to get…

Make sure to show your work to get credit. 1. Assume: Yd = $194,000 b = .90 a = $ 8,000 A)What is consumption (C) ? B)What are savings (S) ? C)What is APC ?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 1QFR

See similar textbooks

Related questions

Q: Question 1 Given the following on a closed economy. Question 2 C = 40 + 0.8Yd I = 55 – 200r G = 20…

A: Since you have asked multiple subparts we would answer the first three for you. To get the answers…

Q: According to the supply and demand model for saving, in a closed economy, an increase in the…

A: There exists equality between savings (S) and investment (I) In classical macroeconomic models. It…

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

A: The budget constraint for a two-period consumption is : [Ct+Ct+1/rt+1]=[Yt+Yt+1/rt+1] Ct is the…

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: Give at least three examples of how savings can be channeled into productive investment. Why is…

A: Examples of how savings can be channeled into productive investment: When households save their…

Q: An Airline spends the following amounts: Employee Salaries 500,000 New Plane 1,500,000 New Engine to…

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

Q: 21. Which of the following equations is correct? A Saving = Disposable income + Consumption B-…

A: The answer to the question is as follows :

Q: Is it possible for total saving to fall when people become more thirfty?

A: Answer: The paradox of Thrift was introduced by J.M.Keynes, this theory explains when individuals…

Q: 1) Sandeep consumes (c1, c2) and earns (m1, m2) in periods 1 and 2 respectively. Suppose that the…

A: Answer: Given, Consumption=c1, c2Income=m1, m2Interest rate=r (a). Intertemporal budget constraint…

Q: government spending

A: 11. Private Saving: if the private saving of the people increases the consumer will able to…

Q: (d) Calculate the level of disposable income such that saving is exactly zero for this person. If…

A: The total income received by the household sector is subject to tax payment accordingly to the…

Q: Which of the following situations represents investment? Saving? Explain Your family takes out a…

A: The situation that represents investment or savings are as follows :

Q: Is saving or spending better,and who is it better for?Explain

A: Saving is the amount that remains after deducting consumption amount from the income. Below is the…

Q: A friend asks you to explain the difference between saving and investment. Explain the difference.

A: The individuals and households earn income from various sources which is then used by them for…

Q: Economists define saving as: that part of after-tax income which is not consumed. O bank accounts. O…

A: In economics, income is comprised of consumption and savings. Whatever is not consumed, is treated…

Q: market both before and after the increase in foreign savings? c. How does the change in foreign…

A: Economic growth is an increase in the production of services and goods over a specific period of…

Q: You take $100 from your bank and spend all of it at A's store. A spends 90% of the 100$ at B's…

A: A one-dollar increase in the monetary base causes the money supply to increase by more than one…

Q: Explain the difference between saving and investment as defined by a macroeconomist. Which of the…

A: The difference between saving and investment as defined by a macroeconomics is- Investment Saving…

Q: Explain what happens to savings, investment and the real interest rate in an economy if the…

A: Government expenditure is basically the amount of money that is spent by the government on…

Q: Assume that a national restaurant firm called BBQ builds 15 new restaurants at a cost of $1 million…

Q: Why is savings equal to investment

A: Saving is the portion is income that is not used in consumption and thus does not include in income…

Q: Discuss the overall purpose people have for investing. Define investment

A: Investment: Investment is the commitment of funds for some specific period of time, in return will…

Q: Suppose GDP in this country is $480 million. National Income Account Value (Millions of dollars)…

A: We have, GDP = $480; The government purchase = $150; The taxes minus transfer payments = $180;…

Q: True/False and Explain An increase in savings implies a decrease in consumption and therefore a…

A: The above given statement is explained as follows:

Q: Q. 1: Consider an economy described as follows: Y = C + I + G Y= 8000 G = 2500 T = 2000 C = 1000 +…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: "In the financial sector and in the economy, commercial banks play an important part. As a core…

A: The financial sector assumes a significant part in the monetary framework and the economy. As a…

Q: Anna cares about her present and future consumption. Anna prefers consumption plan A to consumption…

A: Answer -

Q: (a) Suppose real GDP per person falls during a devastating recession, which in turn causes…

A: GDP: The gross domestic product, or GDP, is a measurement of the total value of all products and…

Q: A consumer is making saving plans for this year and next. She knows her real income after taxes…

A: Intertemporal Choice is defined as the decisions such as the spending habits which can affect the…

Q: Please explain in three well-structured paragraphs the impact of a change in the savings rate on the…

A: Saving is the process of setting aside a portion of current income for future use, or the flow of…

Q: We have the following information for an economy. All values are in billion dollars. Output (Income)…

A: The planned aggregate expenditure is the sum of planned consumption expenditure, planned investment…

Q: Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I = 55 – 200r I= Investment G…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Please explain the impact of a change in the savings rate on the output

A: - In an economy, the individuals or groups either save or consume from their income. Savings and…

Q: If current and future consumption are both normal goods, a decrease in the interest rate will…

A: A decrease in interest rate will reduce future consumption and increase current consumption.

Q: Consider an economy described as follows: Y = C + I + G. Y = 8,000. G = 2,500. T = 2,000. C =…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: d) Now suppose that instead of y = 100, the consumer has y = 140. Again, determine optimal…

A: The lifetime budget constraint is Y1 + {Y2/(1 + r)} = C1 + {C2/(1 + r)}

Q: You are given the following information: Consumption of goods and services…

A: Hi! thank you for the question but as per the guidelines, we answer up to three sub-parts at one…

Q: Question 31 This person earns $1000 of income today and $2000 income next year. Point C represents…

A: Borrowing allows an individual to consume more they can afford using their current income. However,…

Q: In Class we considered the case in which the consumer can borrow and lend freely and the interest…

A: A Budget Constraint is defined as the all the combinations of goods and services a consumer can…

Q: In the Table below, what is the value of saving? Disposable Income Consumption Saving $11,400…

A: Based on disposable income, the households make decision on how much to save and how much to…

Concept explainers

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.

Question

Make sure to show your work to get credit.
1. Assume:
Yd = $194,000
b = .90
a = $ 8,000
A)What is consumption (C) ?
B)What are savings (S) ?
C)What is APC ?
D)What is APS ?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

True/False and Explain An increase in savings implies a decrease in consumption and therefore a decrease in GDP.
Draw a savings and investment graph. Explain the logic of why investment slopes down and savings slopes up.
Which of the following situations represents investment? Saving? ExplainYour family takes out a mortgage and buys a new house. You use your paycheque to buy stock in Sagicor Financial Services.
During his first term, President Obama has increased government spending and cut taxes. For each variable state if it will INCREASE, DECREASE, or REMAIN UNCHANGED. In at least one complete sentence state WHY this change will occur. Be specific. Private Saving (Sp): Consumption: (C) Government Saving (Sg) Total Saving: (S) Real Interest Rates: (r) Investment: (I)
Suppose the following information describes the economy: Consumption 8,000 Investment 1,000 Government purchases 1,000 Net exports 0 Government transfers and interest payments 500 Government tax collections 1,700 Private saving equals ____; public saving equals ______; national saving equals ____. Select one: a. 1,500; 700; 2,700 b. 800; 200; 1,000 c. 800; 200; 600 d. 1,000; 800; 1,000 Note:- Give me proper calculation adn explanation and correct answer otherwise i give multiple downvote Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Please explain in three well-structured paragraphs the impact of a change in the savings rate on the output.
Suppose Ford produced 10,000 Mustangs in the United States in 2016 and during 2016 sold 7,000 to U.S. customers and exported 2,000 to foreign buyers. How many Mustangs would the BEA count as investment spending by Ford in 2016? A) 10,000 B) 9,000 C) 7,000 D) 1,000 Only typed Answer
Which of the following is a major factor in determining an individual's supply of savings? A: Patience B: Investment C: GDP
What is the relationship between Consumption and Savings What are the factors that determine the level of both consumption and savings? Note: Discuss in 3 paragraphs and cite resources.
A friend asks you to explain the difference between saving and investment. Explain the difference.
Karrie is a golf pro, and after she paid taxes, her income from golf and her interest from financial assets totalled $2,500,000 in 2019. At the beginning of 2019, she owned $1,100,000 worth of finanialassets. At the end of 2019, Karrie's financial assets were worth $1,300,000. How much did Karrie spend on consumption goods and services during 2019 ? Karrie spent $ enter your response here on consumption goods and services.
Soon after his election in 1992, President Clinton proposed reducing government spending and increasing taxes For each variable state if it will INCREASE, DECREASE or REMAIN UNCHANGED. In at least one complete sentence state WHY this change will occur. Be specific. Private Saving (Sp): Consumption: (C) Government Saving (Sg) Total Saving: (S) Real Interest Rates: (r) Investment: (I)