marginal propensity to consume is 0.75. At the market interest rate of 7 percent, planned investment spending is $100 billion. slope of the C+ I function is the slope of the consumption function because investment in this model is
Q: The demand curve for gardeners is G(D) = 19 – W, where G = the number of gardeners, and W = the…
A: A demand curve is a graph portraying the connection between the price of a specific commodity and…
Q: An engineer buys a piece of lot for P350000 down payment and 10 deferred semi annually payments of…
A:
Q: Consider the following data on Prices and Quantities of T-Shirts and Pajamas 4. What wasthe growth…
A:
Q: A person buys a piece of lot for Php 136181 down payment and 10 deferred semi-annual payments of P…
A: The cash flow series present worth means the computation of the present value i.e. to be at time 0,…
Q: All of the following are reasons why sustainability is good for business EXCEPT: It saves money…
A: Sustainability focuses on natural resources to keep them in balance. It is a study that how we can…
Q: Suppose again that checkable deposits started off at $300,000 in First Main Street Bank, the…
A: Given information, Initial checkable deposits: $300,000 Required reserve: 10% Open market purchase…
Q: Consider the production function by Y = 10LK where L denotes number of workers and K denotes units…
A: Production function represents the functional relationship between the output and input.
Q: When the demand for a product is perfectly in elastic, a price increase will result in____ what is…
A: Perfectly inelastic demand means any small change in price does not lead to a major change in the…
Q: The labor force is the sum of:
A: Labour force = person employed + person who belongs to the working-age population and actively…
Q: n economy's consumption function is depicted in the table below. Disposable Income Y ($, billions) 0…
A: Marginal Propensity to save (MPS) is the change in savings when there is an additional change in the…
Q: An individual makes five annual deposits of $100,000 in a savings account that pays interest at a…
A: Annual deposit = $100,000 Interest rate for first 6 years is 4% and for next 4 years is 6%
Q: sing a graph, show what will happen in the market for gasoline if the price of oil increases and…
A: The above question is based on the concept of interaction of supply and demand where supply is…
Q: A positive technological change will Group of answer choices shift the per-worker production…
A: A positive technological change will Group of answer choices shift the per-worker production…
Q: How much money should be deposited each year for 7 years starting 1 year from today, if you wish to…
A: Present value is approach that is based on a concept that amount of money today will be worth more…
Q: Draw a graph of a perfectly inelastic demand curve. Use the line drawing tool to graph a perfectly…
A: Elasticity is the concept used by economists to measure the responsiveness of demand to changes in…
Q: market basket of goods used to compute the CPI C 10 units of clothing. Food $4 $6 Clothing $10 2002…
A: A consumer price index is a price index, the price of a weighted average market basket of consumer…
Q: In case of perfect competition, a firm attains maximum satisfaction when MC curve cut MR curve. Is…
A: Perfect competition is the market structure with large buyers and sellers. The market structure…
Q: (c) If the price of capital is $750 a week and the price of labor is $300 a week, which input does…
A: In economics, a production function gives the technological relation between quantities of physical…
Q: brium price will ablished. develops at the original price. and equilibrium quantity will as a new…
A: Supply A basic economic notion called supply refers to the total amount of a particular commodity…
Q: curve that shows various combinations of two goods that a country can produce when all of the…
A: Economics is a social science which deals with efficient allocation of resources because resources…
Q: If a negative income tax is adopted, work effort will decrease if 1. 2. 3. (a) (b) (c) (d) Leisure…
A: Negative income tax implies that if the income of a person is less than the threshold level then the…
Q: With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50.…
A: Here, given information is: Fixed cost: $400 ATC: $3 AVC: $2.50 To find: output
Q: The function C(x)=−24x+1936 represents the cost to produce x items. What is the least number of…
A: Here we are given the total cost function. Dividing that by the number of units we will get the…
Q: Two treasury bonds (with semi-annual coupons) are traded. The first bond matures in six months, has…
A: Given: Particulars Amount Dirty price $96.42 6 months Coupon rate 4.00% 12 months coupon…
Q: Table 1 Year CPI 2013 97.8 2014 98.6 2015 100 2016 102.5 2017 104.1 a. Calculate CPI inflation rates…
A: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a…
Q: 0 A) A and B B A and C B C) A and D LRAS Y₁ SRAS, SRAS₂ Refer to Figure 13-3. Which of the points in…
A: The term "short run" refers to the time frame within which a company can experiment with altering…
Q: A recent government study reported that a college degree is worth an extra $35947 per quarter income…
A:
Q: A recent government study reported that a college degree is worth an extra Php 35947 per quarter…
A: Given , Extra Income quarterly = 35947 Interest rate = 6% Quarterly interest rate = 6%/4 = 1.5%…
Q: uppose a new hormone is discovered that increases the productivity of the workers in producing beef,…
A: The production possibility frontier represents the different combinations of two goods that can be…
Q: What does the phrase "Keynesian revolution" refer to?
A: Full employment is an economic circumstance in which all available labor resources are being…
Q: Managerial Economics What is the answer to the following questions (1-3)? 1. What are primary…
A: Whatever is utilized in creating a commodity is called its input. For instance, for delivering…
Q: Consider two different pairs of goods: a. Sunscreen and bug spray b. Hot dogs and hamburgers Which…
A: Goods are tangible items that exist in an economy and can be sold or purchased for a certain amount…
Q: An index number that measures a basket of related items is called?
A: The Consumer Price Index (CPI) is a computation of the average change over time in the prices paid…
Q: Economics The presence of co-insurance has the following effect on price elasticity of demand: a.…
A: While discussing co-insurance, one might say that it is the amount of money paid by an insured…
Q: onsider each scenario independently. In each of the following cases tell me, using verbal and…
A: Demand and supply are the factors that establish the market price and quantity.
Q: Use the analysis for the market for loanable funds diagram to illustrate and explain how the…
A: The equilibrium in the loanable funds market occurs at such an interest rate where the demand for…
Q: Question 3. The installation costs of a battery system in a home were $5,000 in 2017. Assume that…
A:
Q: Determine whether the demand for the following product is likely to be elastic or inelastic. a.…
A: When Percentage change in Quantity demanded for good or service is less than Percentage change in…
Q: Which of the following central-bank actions would be less effective in raising the money supply when…
A: Central bank uses bank rate, repo rate, reverse repo rate, discount rate, etc to make changes in the…
Q: inflation rises from 10 to 14 percent, explain what happens to real and nominal interest rates…
A: Inflation refers to the chronic rise in the general price level. Inflation affects the real returns…
Q: 3. From the data in the table, calculate the average annual inflation rate as measured by the CPI…
A:
Q: 1) Find and draw the labor supply function. 2) Suppose that the government introduces a cash grant…
A: U(c,l)=log(c)+log(l) c = consumption level of the individual and l = leisure let, w= wage h=labor…
Q: When the article said that Bird was making 19% gross margin profit, this is O A. Accounting profit…
A: Introduction Net profit is the difference between revenue and cost. Gross profit margin is a…
Q: Assume that, without taxes, the consumption schedule for an economy is shown below: GDP, Billions…
A: Equation of consumption function: C=c+bY-T Where T=0 C=c+bY ....(1) Where b is known as the…
Q: Mark's budget constraint is AB. It would pivot to AC if the price of Select one: O a. O b. cassette…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Use the consumption function shown to answer the following questions. At what level of income is…
A: Consumption + Savings = Income Consumption Function: C = a + bY Where a is autonomous consumption…
Q: On December 31, 2021, Annie bought a fitness center with exercise equipment and a building worth…
A: Net investment = Capital investment - Depreciation. Depreciation is the normal wear and tear…
Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…
A: Equilibrium in the market occurs at the intersection of the demand and supply curves. The…
Q: 5. Problems and Applications Q5 Nick owns a water pump. Because pumping large amounts of water is…
A: Supply curve is the graphical representation of supply schedule. Supply schedule is the tabular…
Q: The rate of return to bonds should be near equal to the equilibrium interest rate in the credit…
A: The equilibrium interest rate arises at a point where the quantity of money demand is equal to the…
23
Step by step
Solved in 2 steps
- Given a consumption function, C = co + cY, specified such that the marginal propensity to consume is 75%, how much will C increase by if Y increases by £3bn? a. £0.75bnb. £2,250mc. £2bn d. £1,500mThe marginal propensity to save is given by MPS = 0.5 - 0.2Y-1/2 . There is dissaving of GH¢3.5 when income is GH¢25. Find the savings function.If consumption is $5 billion when disposable income is $0 and if the marginal propensity to consume is dC/dy =1/(square root of y+1)+ 0.9 (in billions of dollars) find the national consumption function.
- If the MPS rises, then the MPC will: a. Fall b. Rise c. Stay the same In what direction will each of the following occurrences shift the consumption and saving schedules, other things equal? a. A large decrease in real estate values, including private homes. b. A sharp, sustained increase in stock prices. c. A 5-year increase in the minimum age for collecting Social Security benefits. d. An economywide expectation that a recession is over and that a robust expansion will occur. e. A substantial increase in household borrowing to finance auto purchases. Irving owns a chain of movie theaters. He is considering whether he should build a new theather downtown. The expected rate of return is 15 percent per year. He can borrow money at a 12 percent interest rate to finance the project. Should Irving proceed with this project? Which of the following scenarios will shift the investment demand curve right? (Select one or more answers) a. Business taxes increase b. The expected return…The Wilson family has a disposable income of $70,000 annually. Currently, the Wilson family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.8 and that their autonomous consumption spending is equal to $10,000. What is the amount of the Wilson family's annual consumer spending?Which one of the following statements relating to marginal propensity to consume is INCORRECT? (a) Marginal propensity to consume for a given consumption function is usually less than 1; (b) If the people in a country save 30c out of every rand they earn, the marginal propensity to consume in this country is said to be 0.7; (c) If the marginal propensity to consume is given as 0.622, then the value of the simple multiplier will be 2.5; (d) The larger the value of the marginal propensity to consume, the steeper the consumption function will be.
- Q.1.14 In the Keynesian model, what is the most important determinant of ahousehold’s consumption?(a) Disposable income.(b) Total wealth.(c) The number of persons in the household.(d) Its’ net wealth. Q.1.15 Induced consumption is: (a) the part of consumption which is independent of the level of income.(b) the minimum level of consumption that is financed from sources otherthan income.(c) The maximum level of consumption that is financed from sources otherthan income.(d) shown by the slope of the consumption function.Q.1.16 In the Keynesian model, an introduction of a proportional tax will: (a) increase the slope of the consumption function.(b) reduce the multiplier.(c) increase the equilibrium level of income.(d) increase the multiplier.Q.1.17 A decrease in the price level will: (a) shift the AS curve to the left.(b) shift the AD curve to the left.(c) shift the AS curve to the right.(d) leave both the AD curve and the AS curve unchanged.If the consumption function is of the form C = 80 + 0.4Yd, the MPS equals Select one: A. -0.6. B. -0.4. C. 0.4. D. 0.6. Given an MPC equal to 0.9, a decrease in business investment expenditures by RM25 billion translates into Select one: A. an increase of agregate output by RM250 billion B. a decrease of aggregate output by RM25 billion C. an increase of aggregate output by RM250 billion D. a decrease of aggregate output by RM250 billion When income is equal to zero, consumption is equal to Select one: A. induced consumption B. aggregate consumption C. autonomous consumption D. endogeneous consumption If the MPC in a country is 0.8, the simple Keynesian multiplier would be Select one: A. 0.8 B. 1.8 C. 0.2 D. 5.0 Which of the following is multiplier formula? Select one: A. 1/MPC B. 1/MPS C. 1/APC D. 1/APSGiven the marginal propensity to consume (MPC) = 0.6 + 0.1/√Y and the autonomous consumption (c) = 45 when income (Y) = 0. Find the consumption function.
- If business managers become more optimistic about future sales and profits, then there will be O no movement along or shift of the investment function an upward shift of the investment function a downward shift of the investment function a leftward movement along the investment function O a rightward movement along the investment function Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Exhibit 8-2 Consumption functionAs shown in Exhibit 8-2, the marginal propensity to consume (MPC) is:When marginal propensity to consume is 0 the value of investment multiplier will be 1 True/False