The slope of a consumption function in an economy is 0.6. Suppose tax increases from Ksh. 100

Fantastic news! We've Found the answer you've been seeking!

Question:

The slope of a consumption function in an economy is 0.6. Suppose tax increases from Ksh. 100 to Ksh.250 what will be the effect on equilibrium income if the original value of equilibrium income was Y=Ksh.2500?

Related Book For answer-question

Statistics For Business Decision Making And Analysis

ISBN: 9780321890269

2nd Edition

Authors: Robert Stine, Dean Foster

See More Books

Posted Date: Mar 19, 2023 11:21 PM

See More Questions

The production function in an economy is Y = A(5N- 0.0025N2), where A is productivity. With this production function, the marginal product of labour is MPN = 5A- 0.005AN. Suppose that A = 2. The...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Suppose that the production function for output in an economy is given by Y = KO.75 N 0.25 The number of workers, N, is constant. The saving rate is s, and the depreciation rate of physical capital...
The best or alpha project managers spend more time on every process group than other project managers except for which one? A. initiating B. planning C. executing D. monitoring and controlling
For each of the following, identify and describe three techniques, and give several examples: (a) Consumer sales promotion methods (b) Trade sales promotion methods.
Discretization of values is based on ADCs. Develop the schematic of a flash-based ADC for positive and negative input voltages! The output should be encoded as 3 bit twos complement numbers, allowing...
On 1 July 2025, McGregor and Roberts decided to amalgamate their businesses and to share profits equally. Financial information at that date was as follows. At 1 July 2025, McGregors accounts...
1. Does Nokia have a truly global strategy, rather than just a series of regional strategies? Explain. 2. Consider the different global marketing environments discussed in the text. How do these...
The Reading Warehouse distributes hardback books to retail stores and extends credit terms of 2/7, n/30 to all of its customers. During the month of June the following inventory transactions...
Forward exchange contract designated as a fair value hedge of a foreign-currency-denominated firm commitment to sell inventory, weakening $US Our U.S.-based company enters into a "firm commitment"...
A joint taxpayer, both aged over 65, receive a combined $54,000 in pension income, and $22,500 in Social Security income. Up to what amount of their Social Security is considered taxable?
To make the value of a stock offer equivalent to a cash offer of $400 million, how many shares should United Continental give to the owners of Express Air?
What's at issue - the good or the service? During this sixth Module, we are learning about the Uniform Commercial Code ("UCC"), specifically Articles 2 and 2a of the UCC. As you read in Chapter 19,...
How Shifts in Trade Impact Labor Markets Section 2 introduces the impacts of international trade on jobs, wages, and working conditions on the domestic market. In this discussion, your task is to:...
Evaluate the investment opportunity in Six Flags (SIX) stock as of September 30, 2021, using principles from the Dhandho Investor
What are any major impacts of the macroeconomic business cycle on supply for the soft drink industry (NAICS 312111)- i.e. how might different phases of the business cycle impact the industry's...
Grab is the most popular application in Southeast Asia and it introduced GrabMart in August 2020 in response to the demand for delivery services for necessities during the COVID-19 outbreak....
Audrey purchases a riding lawnmower using a 2-year, no-interest deferred payment plan at Lawn Depot for x dollars. There was a down payment of d dollars and a monthly payment of m dollars. Express...
A book publisher monitors the size of shipments of its textbooks to university bookstores. For a sample of texts used at various schools, the 95% confidence interval for the size of the shipment was...
1. Because residuals represent the net effects of many other factors, it is rare to find a group of residuals from a simple regression that is normally distributed. 2. The nearly normal condition is...
Using the normal table in the back of the book or software, find the value of z that makes the following probabilities hold. Again, you might find it helpful to draw a picture to check your answers....
Test for misspecification using RESET.
a. Show that the mean-squared forecast error $E\left[\left(\hat{y}_{T+1}-y_{T+1} ight)^{2} \mid I_{T} ight]$ for a forecast $\hat{y}_{T+1}$, that depends only on past information $I_{T}$, can...
Consider the AR(1) model $y_{t}=\delta+\theta y_{t-1}+e_{t}$ where $|\theta|)=0$ and $\operatorname{var}\left(e_{t} \mid I_{t-1} ight)=\sigma^{2}$. Let \(\bar{y}_{-1}=\sum_{t=2}^{T} y_{t}...

The slope of a consumption function in an economy is 0.6. Suppose tax increases from Ksh. 100

Question:

Expert Answer:

The detailed answer for the above question is provided below The consumption function represents the ... View the full answer

Statistics For Business Decision Making And Analysis

Students also viewed these economics questions