Homework Answers
Add Answer to:
Question 2 According to the permanent income hypothesis, how will the paths of borrowing and consumption...
Using the neoclassical model of consumption, an implication of the permanent-income hypothesis is 38. because a. co...
Using the neoclassical model of consumption, an implication of the permanent-income hypothesis is 38. because a. consumption smoothing; of diminishing marginal utility b. that permanent income follows a random walk; of aggregate demand shocks c. that wealth is constant; real interest rates are, more or less, constant d. a low discount factor; of the borrowing constraint e. no borrowing; income in the future is higher and the firm will A decline in the cororte income tax will a. raise the...
Suppose the following table describes the relation of consumption spending to the disposable income Disposable Income...
Suppose the following table describes the relation of consumption spending to the disposable income Disposable Income (Yp)|400 500 600 700 800 Consumption ( 390 470 550 630 710 (a) Derive the consumption function. Explain the two components of (e) What is the level of saving when the level of income equals to $900, to $350, to $300? Redraw the graphs from points (a) and (d) and show the areas of saving and dissaving. (f) Suppose income grows from $850 to...
Suppose that when your income increases by $200, your consumption expenditures increases by $160. Your marginal...
Suppose that when your income increases by $200, your consumption expenditures increases by $160. Your marginal propensity to consume (MPC) is . If your MPC was the same as the MPC for the economy as a whole, the expenditure multiplier for the economy would be. . Thus, a $3 million investment project would increase income by million in total.
ns, this policy will be effective in reducing unemployment, but not under fixed expecta O Under fixed expectatio...
ns, this policy will be effective in reducing unemployment, but not under fixed expecta O Under fixed expectations, this policy will be effective for in reducing unemployment, but not under adaptive exp QUESTION 3 "According to the permanent income hypothesis," O "once a worker becomes employed, the income earned only increase, never decrease." aggregate income is equal to aggregate expenditures. "consumers act as though any shock to their income is permanent, even when it is temporary. "changes in consumption respond...
2 2 a negative sign() in front of those numbers. . If it increases government purchases,...
2 2 a negative sign() in front of those numbers. . If it increases government purchases, real GDP will increase by $ billion suggesting an expenditures multiplier of If the government instead lowers taxes, real GDP will increase by $ billion, suggesting a tax multiplier of b. Now suppose another country's MPC is 0.8, and in this country, government seeks to reduce real GDP by either decreasing government purchases by $40 billion or by raising taxes by the same amount...
Question 1 1 pts By 1 July 2008, more than 70 million American households had received...
Question 1 1 pts By 1 July 2008, more than 70 million American households had received tax rebates of $950 on average, as a part of a temporary economic stirpulus policy. According to Friedman's permanent income model (and holding all other things equal), aggregate consumption in 2008 O should have increased by approximately the amount of the tax rebate O should have increased by more than the tax rebate should have increased by significantly less than the amount of the...
The net export function illustrates that:A) net exports are a positive function of domestic income....
The net export function illustrates that:A) net exports are a positive function of domestic income.B) net exports are independent of domestic income.C) net exports are a negative function of domestic income.D) imports are independent of domestic income.E) exports are independent of foreign income. Suppose the marginal propensity to import for country A is 0.4. Calculate the change in total value of imports of the country if national income increases by $100,000.A) $16,000B) $20,000C) $60,000D) $40,000E) $25,000 An MPI of 0.4 indicates that...
Question 12 1 pts The fraction, or percentage, of total income that is consumed is called...
Question 12 1 pts The fraction, or percentage, of total income that is consumed is called the break-even income. consumption schedule. marginal propensity to consume. average propensity to consume. Question 14 1 pts The effect of a decline in taxes on the level of income will differ somewhat from an increase in government expenditures of the same amount because tax declines tend to be more expansionary households may not spend all of an increase in disposable income. the MPC that...
please do the part b of the question 3. You are given the following information for Country Z C=Co + ci(1-t)Y INI G=G N...
please do the part b of the question
3. You are given the following information for Country Z C=Co + ci(1-t)Y INI G=G NX = X - my Country Z Dec 2018 Autonomous Consumption $20 trillion | Marginal Propensity to Consume 0.9 Marginal Tax Rate 0.25 Investment $200 trillion Government $200 trillion Exports $25 trillion Marginal Propensity to Import 0.07 April 2019 $20 trillion 0.9 0.25 $199 trillion $200 trillion $25 trillion 0.07 a) How much does the government of...
Using the neoclassical model of consumption, an implication of the permanent-income hypothesis is 38. because a. consumption smoothing; of diminishing marginal utility b. that permanent income follows a random walk; of aggregate demand shocks c. that wealth is constant; real interest rates are, more or less, constant d. a low discount factor; of the borrowing constraint e. no borrowing; income in the future is higher and the firm will A decline in the cororte income tax will a. raise the...
Suppose the following table describes the relation of consumption spending to the disposable income Disposable Income (Yp)|400 500 600 700 800 Consumption ( 390 470 550 630 710 (a) Derive the consumption function. Explain the two components of (e) What is the level of saving when the level of income equals to $900, to $350, to $300? Redraw the graphs from points (a) and (d) and show the areas of saving and dissaving. (f) Suppose income grows from $850 to...
ns, this policy will be effective in reducing unemployment, but not under fixed expecta O Under fixed expectations, this policy will be effective for in reducing unemployment, but not under adaptive exp QUESTION 3 "According to the permanent income hypothesis," O "once a worker becomes employed, the income earned only increase, never decrease." aggregate income is equal to aggregate expenditures. "consumers act as though any shock to their income is permanent, even when it is temporary. "changes in consumption respond...
2 2 a negative sign() in front of those numbers. . If it increases government purchases, real GDP will increase by $ billion suggesting an expenditures multiplier of If the government instead lowers taxes, real GDP will increase by $ billion, suggesting a tax multiplier of b. Now suppose another country's MPC is 0.8, and in this country, government seeks to reduce real GDP by either decreasing government purchases by $40 billion or by raising taxes by the same amount...
Question 1 1 pts By 1 July 2008, more than 70 million American households had received tax rebates of $950 on average, as a part of a temporary economic stirpulus policy. According to Friedman's permanent income model (and holding all other things equal), aggregate consumption in 2008 O should have increased by approximately the amount of the tax rebate O should have increased by more than the tax rebate should have increased by significantly less than the amount of the...
Question 12 1 pts The fraction, or percentage, of total income that is consumed is called the break-even income. consumption schedule. marginal propensity to consume. average propensity to consume. Question 14 1 pts The effect of a decline in taxes on the level of income will differ somewhat from an increase in government expenditures of the same amount because tax declines tend to be more expansionary households may not spend all of an increase in disposable income. the MPC that...
please do the part b of the question
3. You are given the following information for Country Z C=Co + ci(1-t)Y INI G=G NX = X - my Country Z Dec 2018 Autonomous Consumption $20 trillion | Marginal Propensity to Consume 0.9 Marginal Tax Rate 0.25 Investment $200 trillion Government $200 trillion Exports $25 trillion Marginal Propensity to Import 0.07 April 2019 $20 trillion 0.9 0.25 $199 trillion $200 trillion $25 trillion 0.07 a) How much does the government of...
Most questions answered within 3 hours.
-
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 1 minute ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 4 minutes ago -
1. When balancing the equation H2SO4 (aq) + NaOH (aq) →
Na2SO4(aq) + H2O(aq), would you...
asked 42 minutes ago -
Provide a definition of “classification hierarchy” and
illustrate your definition with an example of how and...
asked 19 minutes ago -
1. Describe the four main green solvents. Provide one example of
the use of each solvent....
asked 23 minutes ago -
International ethics focus on:
1) exploitation of labor
2)corruption
3) environmental impact
4) none of the...
asked 34 minutes ago -
Costing Models You work for XYZ trucking and your boss has asked
you to figure out...
asked 26 minutes ago -
A 24.6 g sample of brass is heated in a flask to 125°C in
boiling water...
asked 35 minutes ago -
Which drug candidates are most effective at docking with COX1
and COX2 respectively?
COX1: flurbiprofen, COX2:...
asked 48 minutes ago -
You place the left end of the rod on a fulcrum, and hang the
right end...
asked 49 minutes ago -
Push an object with half the mass of the cabinet with a force of
200 N....
asked 55 minutes ago -
Differentiate the application and functions of
electronic medical records, electronic health records and
electronic personal health...
asked 56 minutes ago