Q: student has a monthly budget of $150 to spend on either coke, which cost $5 each, or biryani, which…
A: Budget constraint represents all the combinations of goods and services a consumer can consume with…
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Q: Asap What would the value of spending be if you had $1300 in savings and $2250 in income
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A: Disposable income: Disposable income is the total income that is available to an individual for…
Q: Write brief notes ( on each of the following types of budgeting systems: 1) Cash budgeting 2) Medium…
A: Since you have asked multiple questions, we will answer the first-three parts for you. If you want…
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A: Consumption is referred to as the usage of goods and services by individuals.
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A: MPC = Change in C / Change in Y = (300 - 120) / (300 - 100) = 180/200 = 0.90
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A:
Q: In this hypothetical economy, there are two consumers living over two periods of life. Ann's incomes…
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A: There are various factors which affect the the size of multiplier.
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A: We have interest rate =0.1 and utility function is an interteporal utility function.
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A: Answer -
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A: Consume an equal amount in two period Y1 = 100 Y2 = 150 Interest rate on Saving = 1% Interest rate…
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A: C= 0.8( y – ty) M d = 0.25y - 30r I = 400 -20r M s /p = 350 G = 500 t = 0.20y Here, C = Consumption,…
Q: Empirical evidence suggests that many consumers tend to spend all of their current disposable income…
A: It appears to be sensible to expect that utilization spending by families will be firmly identified…
Q: Empirical evidence suggests that many consumers tend to spend all of their current disposable income…
A: Yes, this is irrational that many consumers tend to spend all of their current disposable income…
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A: An expansion in the rate of interest will cause a clockwise pivot in the budget line as demonstrated…
Q: Give an example of any factor that influence the size of the multiplier
A: Below is the formula for the Multiplier: Multiplier = 11 - MPCMPC = Marginal Propensity to Consume
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Q: 1. Consider a two-period model in which you work and save in the initial period (period 0) and live…
A: Period 0 income= $250,000 Period 0 income= $0
Q: Empirical evidence suggests that consumers tend to spend all their current disposable income…
A: Classical economic theory accepts that people are rational. Be that as it may, in reality, we…
Q: making up to $150,000 received a $2,400 check. Think about how the savings rate varies with…
A: A stimulus check is a check being sent to a taxpayer by the government of US. These are being…
Q: if the value of MPC is 0.29 Find the value of MPS
A: Generally in the given question MPC is given as = 0.29 So the value of MPS is needed = ?
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A: The information being given is:- Change in Savings = $2000 Change in income = $4300 We have to…
Congress passed the CARES Act to provide an economic safety net during the Covid-19 pandemic shutdown. The CARES Act included stimulus checks that were sent to some households. Households with individuals making up to $75,000 received a $1,200 check and households with married couples making up to $150,000 received a $2,400 check. Think about how the savings rate varies with household income and the utility of savings versus spending when answering the questions below.
Does the particular income limit imposed make sense? Should it be higher, lower, or should there be no limit. Provide an explanation for your answer.
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- Congress passed the CARES Act to provide an economic safety net during the Covid-19 pandemic shutdown. The CARES Act included stimulus checks that were sent to some households. Households with individuals making up to $75,000 received a $1,200 check and households with married couples making up to $150,000 received a $2,400 check. Think about how the savings rate varies with household income and the utility of savings versus spending when answering the questions below. Explain why Congress only sent stimulus checks to households up to a certain income level.Congress passed the CARES Act to provide an economic safety net during the Covid-19 pandemic shutdown. The CARES Act included stimulus checks that were sent to some households. Households with individuals making up to $75,000 received a $1,200 check and households with married couples making up to $150,000 received a $2,400 check. Think about how the savings rate varies with household income and the utility of savings versus spending when answering the questions below. 1. Explain why Congress only sent stimulus checks to households up to a certain income level. 2. Does this program make sense given the fact that there is a severe economic downturn? Why or Why not?Suppose people can consume the income they earn or save and invest it at rate ?. If we tax wealth at a rate greater than ?, how are people likely to adjust their rate of savings?
- Empirical evidence suggest that many consumers tend to spend all of their current disposable income immediately. Is this irrational? DiscussSuppose the tax rate on interest income from saving were reduced. a. The income effect, but not the substitution effect, would tend to reduce private saving. b. The substitution effect, but not the income effect, would tend to reduce private saving. c. Both the income and substitution effect would tend to reduce private saving. d. Neither the income nor the substitution effect would tend to reduce private saving.Explain the meaning of comprehensive income and show how a tax on interest income influence people willingness to save.
- Section 1. Multiple Choice WITH Explanation. Choose the one alternative that best completes the statement or answers the question and EXPLAIN your reasoning. Do not forget to include equations, graphs, or any other material you believe is needed to understand your choice. To answer this problem assume a two-period economy with the following logarithmic utility function: U(C1,C2)=[ln(C1)+ln(C2)] where C1 and C2 are the consumption in the first and second periods, respectively. Households are endowed with Q1 and Q2 units of consumption goods in periods 1 and 2 and can borrow or lend at the world interest rate, r1=r*. Every household starts period 1 with B∗0≠ 0. Households can purchase bonds, B∗1, which pay the interest rate r1. The terms of trade in periods 1 and 2 are TT1 and TT2 , respectively. Then in this economy, the country adjust to____________________changes in the terms of trade by mostly changing____________________and the country adjusts to____________________changes in…Empirical evidence suggests that many consumers tend to spend all of their current disposable income immediately. Is this irrational?Which of the following is a major factor in determining an individual's supply of savings? A: Patience B: Investment C: GDP
- In your notebook explain the quotation.“Do not save what is left after spending, but spend what is left after saving.” – Warren BuffettSuppose a consumer has $1500 in the current time period and $1100 in the future time period.Suppose also that the consumer can borrow and lend freely and, unless otherwise specified, borrowing and lending interest rates are the same. (a) If the interest rate between time periods is 50%, what is the budget constraint between consumption in the present and consumption in the future? (B) If the interest rate at which the consumer can borrow is 75% but the rate at which she can lend is25%, what is the budget constraint? (C) Suppose the interest rate is 50%. If the consumer has to pay a fee of 10% of the loan amount in order to borrow money, what is the budget constraint?Empirical evidence suggests that consumers tend to spend all their current disposable income immediately.is it irrational? Explain