Question: Given the consumption function c = $16,000 + 0.5 yd, if individual household current disposable income is $20,000, individual household consumer spending will equal a.

Given the consumption function c = $16,000 + 0.5 yd, if individual household current disposable income is $20,000, individual household consumer spending will equal

a. $36,000.

b. $26,000.

c. $20,000.

d. $16,000.

e. $6,000.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Microeconomics Principles Questions!

Using the scenarios in case Exhibit 9, what role does leverage play in affecting the return on equity (ROE) for CPK? What about the cost of capital? In assessing the effect of leverage on the cost of...

4. Using the financial ratios provided by eVal, evaluate any trends in Royal Caribbean?s return on equity, compare it with Carnival Cruise?s return on equity, and discuss the main causes of any...

By MARK@ (Ruska, Markevichus, Naniev, Grachev) Emerging russian ice-cream market is good area for different producers as it has great potential 1. Currently Russian ice-cream market is the 4th...

6 | Consumer Choices Figure 6.1 Investment Choices Higher education is generally viewed as a good investment, if one can afford it, regardless of the state of the economy. (Credit: modification of...

Question one. 1. The following table shows the quantities of corn supplied and demanded at different prices. Price per Ton Quantity Supplied Quantity Demanded $80 700 1,200 85 800 1,100 90 900 900 95...

Exercise. The short-run aggregate supply curve may shift to the left if: a inflationary expectations increase. b productivity increases. c government spending increases. d personal income taxes...

7. If a bond is quoted in the newspaper at 88.75, the current price of a $1,000 face value bond is: (Points : 1) $75.00 $88.00 $88.75 $887.50 $1,000.00 11. Assume the beta for the stock market in...

Please help...thank you! PART A - MULTIPLE CHOICE QUESTIONS 1. Real GDP is nominal GDP adjusted for: A) double counting. B) changes in prices. C) population. D) imports. 2. What do a rubbernecking...

Part one. Consider a economy with a constant population of N = 200. Individuals are endowed with y = 10 units of the consumption good when young and nothing when old. 1. What is the equation for the...

Assignment 01 (semester 2) Assignment 01 Unique number 730716 Closing date 30 August 2021 Content Learning units 1 and 2 of the Study Guide and the relevant chapters of the prescribed book Questions...

Let R = Z [x] and let I = be an ideal. 1) Prove that R/I is isomorphic to Z3 [x] / ii) Conclude that R/I is a field and determine the number of its elements, show your steps iii) Prove or...

Kensaq is a mining company. Its mission is to 'maximize profits for shareholders whilst recognizing its responsibilities to society'. Its considering a mining opportunity abroad in a remote country...

Sunland Corporation issues 27000 shares of $50 par value preferred stock for cash at $75 per share. In the stockholders' equity section, the effects of this transaction increases paid-in-capital and...

Paul has the following long-term capital gains and losses for 2015: $62,000 28% gain, $21,000 28% loss, $18,000 25% gain, and $64,000 0%/15%/20% gain. He also has a $53,000 short-term loss and a...