Homework Answers
The answer is option c- greater a household's disposable income and the smaller a household's expected future income
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How do households make saving decisions? The the greater is the amount that a household decides...
The greater a household's the less is its saving. O A. expected future profits OB. disposable...
The greater a household's the less is its saving. O A. expected future profits OB. disposable income O C. return from saving OD. wealth Click to select your answer.
What influences the supply of loanable funds? The supply of loanable funds is influenced by O...
What influences the supply of loanable funds? The supply of loanable funds is influenced by O A. the real interest rate, and as the real interest rate rises, the supply of loanable funds increases O B. expected future income, and the higher a household's expected future income, the smaller is its saving today O c. expected profit OD. a household's wealth, and the greater a household's wealth, the greater is its saving
Product 13) 13) The gap that exists when equilibrium real Gross Domestic (GDP) is greater than...
Product 13) 13) The gap that exists when equilibrium real Gross Domestic (GDP) is greater than full employment real Gross Domestic Product (GDP) is called a(n) A) demand gap. C) recessionary gap B) employment gap D) inflationary gap 14) 14) Economic growth will NOT result in inflation if aggregate demand shifts A) outward to the right at the same speed as aggregate supply B) outward to the right as aggregate supply shifts inward to the left. C) inward to the...
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...
1. Th e supply of loanable funds: comes from households that consume all of their income...
1. Th e supply of loanable funds: comes from households that consume all of their income results from the desire to accumulate wealth for retirement or for major future expenditures c. is inversely related to the interest rate d. does not depend on the interest rate 2. Both consumer demand and investment demand for loanable funds will be: directly related to the interest rate inversely related to the interest rate c. unrelated to the interest rate A decrease in expected...
Q1) Q2) Q3) Q4) Q5) What is the distinction between automatic and discretionary fiscal policy? Choose...
Q1)
Q2)
Q3)
Q4)
Q5)
What is the distinction between automatic and discretionary fiscal policy? Choose the correct statements. a. A fiscal policy action initiated by an act of Parliament is called discretionary fiscal policy. b. All fiscal stimulus is discretionary. c. The fiscal stimulus act passed by the U.S. government in 2008 is an example of automatic fiscal policy. d. Fiscal stimulus is the use of fiscal policy to increase production and employment. O A. Statements a and c...
In Chapter 3, we begin to look at how to use data to make decisions. It...
In Chapter 3, we begin to look at how to use data to make decisions. It is not enough to say, "the answer is $2,100." Rather, what do we do with this information to make good choices? Your assignment for this discussion section is to learn how to use the Expected Monetary Value (EMV) to help you make decisions. Here’s your task: You have been asked to decide whether your company should build a new factory in Alabama. If you...
Start with the demand side. The household in question has the following Cobb- Douglas utility function:...
Start with the demand side. The household in question has the following Cobb- Douglas utility function: The household also faces the following budget constraint: The above says that the household's after-tax income, (1-T)Y, is divided between consumption of goods and services, C,, and the amount spent on housing services (r+0+ τ.)P,HH, . This latter variable can be thought of as the user cost of housing and consist of the rate of interest (r), the rate of depreciation (6) and residential...
is all light bulbs that function as designed. The regeaiu nber of light bulbs per household that do not fun...
is all light bulbs that function as designed. The regeaiu nber of light bulbs per household that do not function as designed. the second basic step in a statistical study in this situation. Choose the should only gather raw data from light bulbs that function as designed. should only gather raw data from light bulbs that do not function as des should gather data about functionality from the largest sample of light b researcher can gather data should gather raw...
Instructions: You learned about how businesses use capital budgeting tools to evaluate long-term investment decisions. We...
Instructions: You learned about how businesses use capital budgeting tools to evaluate long-term investment decisions. We may be using these techniques (even if subconsciously) to make some personal life decisions. In this discussion, I encourage you to think about one such decision: your decision to attend UTRGV. Attending college has direct and opportunity costs, and you expect to benefit from this decision in the future. Think about and note down the following. Use rough approximations. 1. What is your cost of...
The greater a household's the less is its saving. O A. expected future profits OB. disposable income O C. return from saving OD. wealth Click to select your answer.
What influences the supply of loanable funds? The supply of loanable funds is influenced by O A. the real interest rate, and as the real interest rate rises, the supply of loanable funds increases O B. expected future income, and the higher a household's expected future income, the smaller is its saving today O c. expected profit OD. a household's wealth, and the greater a household's wealth, the greater is its saving
Product 13) 13) The gap that exists when equilibrium real Gross Domestic (GDP) is greater than full employment real Gross Domestic Product (GDP) is called a(n) A) demand gap. C) recessionary gap B) employment gap D) inflationary gap 14) 14) Economic growth will NOT result in inflation if aggregate demand shifts A) outward to the right at the same speed as aggregate supply B) outward to the right as aggregate supply shifts inward to the left. C) inward to the...
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...
1. Th e supply of loanable funds: comes from households that consume all of their income results from the desire to accumulate wealth for retirement or for major future expenditures c. is inversely related to the interest rate d. does not depend on the interest rate 2. Both consumer demand and investment demand for loanable funds will be: directly related to the interest rate inversely related to the interest rate c. unrelated to the interest rate A decrease in expected...
Q1)
Q2)
Q3)
Q4)
Q5)
What is the distinction between automatic and discretionary fiscal policy? Choose the correct statements. a. A fiscal policy action initiated by an act of Parliament is called discretionary fiscal policy. b. All fiscal stimulus is discretionary. c. The fiscal stimulus act passed by the U.S. government in 2008 is an example of automatic fiscal policy. d. Fiscal stimulus is the use of fiscal policy to increase production and employment. O A. Statements a and c...
Start with the demand side. The household in question has the following Cobb- Douglas utility function: The household also faces the following budget constraint: The above says that the household's after-tax income, (1-T)Y, is divided between consumption of goods and services, C,, and the amount spent on housing services (r+0+ τ.)P,HH, . This latter variable can be thought of as the user cost of housing and consist of the rate of interest (r), the rate of depreciation (6) and residential...
is all light bulbs that function as designed. The regeaiu nber of light bulbs per household that do not function as designed. the second basic step in a statistical study in this situation. Choose the should only gather raw data from light bulbs that function as designed. should only gather raw data from light bulbs that do not function as des should gather data about functionality from the largest sample of light b researcher can gather data should gather raw...
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