Real interest rate (percent) L₁ 4₂ 11) Refer to Figure above. A shift from D2 to Di will A) an increase in expected future profits B) an increase in net exports C) an increase in corporate taxes D) a decrease in tax credits for savings Supply D₁ D₂ Loanable funds (dollars per year) result from which of the following?
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- what is the equilibrium income in this IS-LM model? Y = C +I +GC = 200+0.8(Y-T )I = 1,600-100r G =T = 1,000MS= 5,000 P =2MD/P= 0.5Y - 250r +500 ➀ 5000 ➁ 6000 ➂ 7000 ➃ 8000 ➄ 10000 Please type out the correct answer ASAP within 40 min with proper explanation of the each option given. Will give you thumbs up only for the correct answer.Suppose the macroeconomic parameters are as follows in Turkey. Production: Y = A K1/3 L2/3 (A= 7 ) Factor supplies: K, L (K = 3000, and L= 1300) Government: 2200, Taxes: 2000 Consumer behavior C = 1000 + 0.6 (Y-T Investment behavior | = 3000 - 1000г Compute real interest rate in Turkey (Show the percentage value as numerical such as 15 for %15 or 0.15).Which of the following results in an increase in consumers’ lifetime wealth, i.e. an increase in the net presentvalue of lifetime income? (a) Increase in interest rate(b) Decrease in future wages(c) Decrease in interest rate(d) Decrease in current taxes, financed by an increase in future taxes
- A consumer's current income (y) is 200 and the future income ( t.') is 240. A current lump sum tax (t) of 10 is paid and the tax in the next period (t) is 15. The real interest rate is 20% for each period. Please assume that current and future consumption are complements. and the consumer always prefers to have one unit of current consumption and two units of consumption in the future. Calculate the optimal current and future consumption and the optimal current and future savings. Is the consumer a lender or a borrower? How does he she. as a lender or a borrower. affect the future consumption?The Reliable Aircraft Company manufactures small, pleasure-use aircraft. Based on past experience, sales volume appears to be affected by changes in the price of the planes and by the state of the economy as measured by consumers' disposable personal income. The following data pertaining to Reliable's aircraft sales, selling prices, and consumers' personal income were collected: Year Aircraft Sales Average Price Disposable Constant Income (Dollars) (In constant 2006 dollars, billions) 2006 525 16,800 610 2007 450 8,000 610 2008 400 8,000 580 The arc price elasticity of demand between 2006 and 2007 is: The arc income elasticity of demand between 2007 and 2008 is: Assume that these estimates are expected to remain stable during 2009. Forecast 2009 sales for Reliable assuming that its aircraft prices remain constant at 2007 levels and that disposable personal income will increase by 7%. Also assume that the arc…A consumer's current income (y) is 200 and the future income ( t.') is 240. A current lump sum tax (t) of 10 is paid and the tax in the next period (t') is 15. The real interest rate is 20% for each period. Please assume that current and future consumption are complements. and the consumer always prefers to have one unit of current consumption and two units of consumption in the future.Calculate the consumer's lifetime wealth.Calculate the optimal current and future consumption and the optimal current and future savings. Is the consumer a lender or a borrower? How does he she. as a lender or a borrower. affect the future consumption?
- During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent and utilities. The firm’s owner has provided $750,000 of her own money instead of investing the money and earning a 10 percent annual rate of return. Question: Higher personal taxes in the U.S. will affect personal disposable income which in turn will affect the domestic demand for goods and services. Costs of production and inputs however continue declining. What do you expect the U.S. output and prices in the near future. Assume we are moving from the old equilibrium to a new equilibrium. Please state clearly your assumptions and include a graph to support your answer.Ryan's income is $1,700 and his net taxes are $700. What is his disposable income? Answer in dollars, no commas (so if the answer is $5,000, input 5000).At income level of 50 what would be the unintended, unplanned inventory investment? a) -20 b) -50 c) 20 d) 50 e) None of the above.
- When we add depreciation to net investment, we arrive at............... what is the answer, we arrive at gross depreciation or gross investment? Step 1 Depreciation: The term depreciation refers to the fall in the monetary value of a commodity over the time period due to the use of the commodity. During the use of commodity, normal wear and tear, and obsolescence is the measure reason for the depreciation of the commodity. Step 2 Gross Investment Is the answer. The gross investment is the investment that encompasses the net investment and depreciation. If the depreciation is removed from the gross investment then the remaining investment will be the net investment. Similarly, if we add the depreciation with the net depreciation then the resulting investment amount will be the gross investment. Gross Investment = Net Investment + Depreciation Step 3 Answer. Gross depreciation.A real value will increase only when prices increase. Select one: True False If the real value for manufacturing sales increases then the nominal value must also have increased. Select one: True False If nominal GDP is rising faster than real GDP then prices must be rising. Select one: True False10. The breakeven point represents the level at which aggregate expenditures equal gross domestic product. True or false 12. The relationship between saving and the real interest rate is called investment demand. True or false 17. The daily use of the term investment, understood as the purchase of stocks or bonds, can cause confusion with the term capital invention. True or false