Homework Answers
Answer : The answer is option D.
According to Say's law, all savings are investment. This means that Savings = Investment. Hence except option D other options are not correct. Therefore, option D is the correct answer.
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According to Say's Law, A GDP varies with savings the Keynesian consumption function is downward sloping....
The Keynesian zone of the aggregate supply curve is_._while the neoclassical portion is_.... O upward-sloping, downward-sloping...
The Keynesian zone of the aggregate supply curve is_._while the neoclassical portion is_.... O upward-sloping, downward-sloping horizontal; vertical O vertical; flat How does the intermediate zone of the AD-AS curve follow Say's law when AD shifts to the right? O SRAS creates more demand by decreasing prices and output level. SRAS moves closer to potential GDP and increases price level. O SRAS is flatter and creates more supply by decreasing prices and output level Which of the following statements about...
1.) According to Say’s law, a given value of supply must create Select the correct answer...
1.) According to Say’s law, a given value of supply must create Select the correct answer below: an abundance of wealth for the economy's agents further increases in the supply of the inputs to production a decrease in the demand for the product an equivalent value of demand somewhere else in the economy 2.) Keynes' law is Select all that apply: the opposite of Say's law the same as Say's law consistent with the statement that supply creates demand described...
2. Classical economists and interest rate flexibility According to Say's law, funds (money) saved...
2. Classical economists and interest rate flexibility According to Say's law, funds (money) saved must give rise to an equal amount of funds (money) invested The following graph shows the saving curve (S) and the investment curve (I) for a small economy Show the effect of an increase in total saving at any interest rate in this economy, which behaves according to the classical view, by dragging one or both of the curves. Note: Tool tip: Click and drag one...
Define the following Keynesian consumption function – C = ??? MPC, MPS Investment – Planned/Intended vs...
Define the following Keynesian consumption function – C = ??? MPC, MPS Investment – Planned/Intended vs Actual Savings Aggregate Demand (Ag Expenditure) function – AD = ???? AD function changes due to changes in a, b, Ip Unplanned inventory changes Multiplier
In the GDP function Y = C + S + I, where C=consumption (a+bY), S = savings and I = investment, ho...
In the GDP function Y = C + S + I, where C=consumption (a+bY), S = savings and I = investment, how are C+S+I impact when... 1. Y (real income) increases? 2. r (real interest rate) increases)?
2. Classical economists and interest rate flexibility According to Say's law, funds (money) saved must give...
2. Classical economists and interest rate flexibility According to Say's law, funds (money) saved must give rise to an equal amount of funds (money) invested. The following graph shows the saving curve (S) and the investment curve (I) for a small economy. Show the effect of an increase in total saving at any interest rate in this economy, which behaves according to the classical view, by dragging one or both of the curves. Note: Tooltip: Click and drag one or...
Savings/Investment in Class GDP = 10 Consumption = 7 Government Spending = 2 Private Savings = 1 Transfer Payments...
Savings/Investment in Class GDP = 10 Consumption = 7 Government Spending = 2 Private Savings = 1 Transfer Payments = 1 A) Calculate Taxes, Investment, Public Savings and National Savings B) Draw the graph of the market for loanable funds, assuming the equilibrium interest rate i* = 3% Make sure to label the axis and equilibrium points C) If G increases so that now G = 2.5, recalculate Public Savings, National Savings and Investment. (assume that any other variables stay...
Question 2 In the Keynesian cross, assume that the consumption function is given by C =...
Question 2 In the Keynesian cross, assume that the consumption function is given by C = 150 +0.7 (Y-T) Planned investment is: I = 100 – 10 *r Government purchases and taxes are both 50. a. Graph consumption as function of income. b. Graph investment as function of the real interest rate. c. Suppose that the real interest rate is 5. Write the equation of the planned expenditure. d. Suppose that the real interest rate is 5. What is the...
On the planet Zorp, consumers consume mechanically based on the following consumption function ? = ?0...
On the planet Zorp, consumers consume mechanically based on the following consumption function ? = ?0 + 0.6? − 500?, where C is consumption, C0 is a constant, Y is consumers’ income (equivalent to GDP), and i is the interest rate written in decimal terms (i.e. a 5% interest rate gives i=0.05). Investors invest based on the following function: ? = ?0 − 1000?, where I is investment and I0 is a constant. There is no government in Zorp, so...
The Keynesian zone of the aggregate supply curve is_._while the neoclassical portion is_.... O upward-sloping, downward-sloping horizontal; vertical O vertical; flat How does the intermediate zone of the AD-AS curve follow Say's law when AD shifts to the right? O SRAS creates more demand by decreasing prices and output level. SRAS moves closer to potential GDP and increases price level. O SRAS is flatter and creates more supply by decreasing prices and output level Which of the following statements about...
2. Classical economists and interest rate flexibility According to Say's law, funds (money) saved must give rise to an equal amount of funds (money) invested The following graph shows the saving curve (S) and the investment curve (I) for a small economy Show the effect of an increase in total saving at any interest rate in this economy, which behaves according to the classical view, by dragging one or both of the curves. Note: Tool tip: Click and drag one...
2. Classical economists and interest rate flexibility According to Say's law, funds (money) saved must give rise to an equal amount of funds (money) invested. The following graph shows the saving curve (S) and the investment curve (I) for a small economy. Show the effect of an increase in total saving at any interest rate in this economy, which behaves according to the classical view, by dragging one or both of the curves. Note: Tooltip: Click and drag one or...
Savings/Investment in Class GDP = 10 Consumption = 7 Government Spending = 2 Private Savings = 1 Transfer Payments = 1 A) Calculate Taxes, Investment, Public Savings and National Savings B) Draw the graph of the market for loanable funds, assuming the equilibrium interest rate i* = 3% Make sure to label the axis and equilibrium points C) If G increases so that now G = 2.5, recalculate Public Savings, National Savings and Investment. (assume that any other variables stay...
Question 2 In the Keynesian cross, assume that the consumption function is given by C = 150 +0.7 (Y-T) Planned investment is: I = 100 – 10 *r Government purchases and taxes are both 50. a. Graph consumption as function of income. b. Graph investment as function of the real interest rate. c. Suppose that the real interest rate is 5. Write the equation of the planned expenditure. d. Suppose that the real interest rate is 5. What is the...
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