Suppose you have the following information about a fictitious economy. Assume there are no taxes in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose you have the following information about a fictitious economy. Assume there are no taxes in this economy. Disposable Income and Consumption Disposable Income (dollars) $0 8,000 16,000 24,000 32,000 40,000 Consumption (dollars) $4,000 11,000 18,000 25,000 32,000 39,000 Instructions: In parts a and c, enter your answers as a whole number. In part b, round your answers to two decimal places. a. What is the equilibrium level of consumption? $ b. What is the MPC and MPS for this economy? MPC:[ MPS: c. What is the value of autonomous consumption for this economy? Suppose you have the following information about a fictitious economy. Assume there are no taxes in this economy. Disposable Income and Consumption Disposable Income (dollars) $0 8,000 16,000 24,000 32,000 40,000 Consumption (dollars) $4,000 11,000 18,000 25,000 32,000 39,000 Instructions: In parts a and c, enter your answers as a whole number. In part b, round your answers to two decimal places. a. What is the equilibrium level of consumption? $ b. What is the MPC and MPS for this economy? MPC:[ MPS: c. What is the value of autonomous consumption for this economy?
Expert Answer:
Answer rating: 100% (QA)
To find the equilibrium level of consumption we need to identify the point where disposable income a... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
Students also viewed these economics questions
-
For each transaction, indicate in which journal it should be recorded. Sales Journal Cash Receipts Journal Purchases Journal Cash Payments Journal General Journal Returned products to a supplier....
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1 and 2. On September 1, Irene opened a retail store that specializes in sports car...
-
Which of the following would be a reason China would place a tariff on Canadian lumber? A. China is trying to protect its domestic lumber industry. B. China is seeking to lower the cost of lumber for...
-
A mass of 2.4 kg of air at 150 kPa and 12C is contained in a gas-tight, frictionless pistoncylinder device. The air is now compressed to a final pressure of 600 kPa. During the process, heat is...
-
Balance Sheet Accounts and Their Use Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account...
-
It is generally known that boys grow at an unusually fast rate between the ages of about 12 and 14. Following are heights, in inches, of 40 boys measured at age 12 and again at age 14. Can you...
-
At Richmond Company, prepayments are debited to expense when paid, and unearned revenues are credited to revenue when received. During January of the current year, the following transactions...
-
FBT(Fringe benefit tax ) questionnaire Brown Engineers Limited Employee number Employees Gross Remuneration 1 Joe Brown 75000 2 Jill Brown 75000 3 Jack Grey 55000 4 John Doe 55000 Vehicles Cost BV...
-
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
-
A spherical tank full of oil has a radius of 20m and has a 2m spout at the top. Note that the density of the oil is p = 900 kg/m and the acceleration due to gravity is g = 9.8 m/s. (Approximate...
-
Fill in the Blank. The instrument that measures the velocity of a vibrating body is called a(n) _____________ .
-
A vibrometer is used to measure the vibration of an engine whose operating-speed range is from \(500 \mathrm{rpm}\) to \(2000 \mathrm{rpm}\). The vibration consists of two harmonics. The amplitude...
-
Fill in the Blank. A seismic instrument consists of a(n) ______________ system mounted on the vibrating body.
-
Fill in the Blank. Phase marks are used in ____________ plane balancing using a vibration analyzer.
-
Fill in the Blank. Machine errors can cause ____________ in rotating machines.
-
The Boxwood Company sells blankets for $31.00 each. The following was taken from inventory records during May. The company had no beginning inventory on May 1. Date Product Z Units Cost May 1 Balance...
-
Swifty company is a publicly held corporation whose $1 par value stock is actively traded at $30 per share. The company issued 3400 shares of stock to acquire land recently advertised at $93000. When...
-
a. Rework Problem 18-4 using the spreadsheet model. b. Construct data tables for the intrinsic value and Black-Scholes exercise value for this option and graph the relationship. Include possible...
-
Allied Food Products is considering expanding into the fruit juice business with a new fresh lemon juice product. Assume that you were recently hired as assistant to the director of capital budgeting...
-
Coleman Technologies is considering a major expansion program that has been proposed by the companys information technology group. Before proceeding with the expansion, the company must estimate its...
-
Use Table A.2 to find the area to the right of z = 2.31. Z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 -0.8 -0.7 .2119 .2090 .2420 2389 -0.6 .2743 .2061 .2033 2358 .2327 .2709 .2676 .2643 .2611...
-
Use any method to find the z-score with an area of 0.09 to its right.
-
If X is a continuous random variable, then P(X = a) = ___________________ for any number a. In Exercises 914, fill in each blank with the appropriate word or phrase.
Study smarter with the SolutionInn App