you define your permanent income as the average income this and the past 4 years’ incomes and you always consume 4/5 of your permanent income. Your earnings record over these years has been: Yt = 40,000 Yt-1 = 38,000 Yt-2 = 34,000
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Say you define your permanent income as the average income this and the past 4 years’ incomes and you always consume 4/5 of your permanent income. Your earnings record over these years has been:
Yt = 40,000
Yt-1 = 38,000
Yt-2 = 34,000
Yt-3 = 32,000
Yt-4 = 31,000
If next year your income increases to Yt+1 = 46,000 by how much will your consumption change between year t and year t+1?
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- If mpc = 0.8 and the additional income is P12,000, how much is the additional consumption? How much is the additional savings? show the computationsBell Greenhouses has estimated its monthly demand for potting soil to be the following: N=400+4X where N=monthlydemandforbagsofpottingsoil X=timeperiodsinmonths(March2006=0) Assume this trend factor is expected to remain stable in the foreseeable future. The following table contains the monthly seasonal adjustment factors, which have been estimated using actual sales data from the past five years: Forecast Bell Greenhouses demand for potting soil in March, June, August, and December 2007. If the following table shows the forecasted and actual potting soil sales by Bell Greenhouses for April in five different years, determine the seasonal adjustment factor to be used in making an April 2008 forecast.Find the APC when consumption is said to be 192 and the income is 246
