140 120 100 80 60 40 20 0. 40 60 80 100 12 -20 -40 income: Q 01. Given this diagram of Consumption and Savigns functions, what is the mpc (marginal propensity to consume? expenditures, income 20
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Q: MPC = .75 What is the value of the multiplier?
A: MPC=0.75 MPS=1-0.75 =0.25
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A: We have the following information-
Q: Suppose that when disposable income decreases by $2,000, consumption spending increases by $1500.…
A: Marginal propensity to consume is defined as the change in consumption divided by change in income.
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Q: 1. Find Equilibrium output/ national income with given following
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A: Answer- Need to find- Given this diagram; what is the mpc (marginal propensity to consume Diagram-
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Q: Consider the following functions: C=200+0.7Y What is the marginal propensity to consume?
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A: Equilibrium income can be calculated by using the following formula.
Q: The value of marginal propensity to consume(MPC) is 0.61 Calculate the value of multiplier
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- You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)What are the nonincome determinants of Consumption and Savings?What is constrains optimization, explain and discuss the significance of langrage multiplier.
- Explain the term random walk in consumption. Under what conditions will consumption follow such a behaviour?.Suppose you have the following disposable income and consumption data for a country, as shown in the table below Disposable income and Consumption BENp e e (dllar 13,000 227,000 3,400 E4,300 1,000 AUsing the information in the table, graph the consumption schedule for this country Instructions Use the tool provided C' to plot the consumption line polnt by point points total. Use the tool Equnibrium to indicate where consumption equals disposable income. Consumption Schedule Conumption (dollarn) 21.000 lave 27000 26000 25000 24.000 23,000 22,000 21000 20,000 20,000 22000 26.000 24.000 28,000 Disposable income (dollars) &What is the stope of the consumpton schedule? Instructions Round your answer to 1 decimal placeWhat are the relationships between TP, MP and AP curves?
- Assume in a simple economy that the level of saving is –500 whenaggregate output equals zero and that the marginal propensity tosave is 0.2. Derive the saving function and the consumption func-tion, and draw a graph showing these functions. At what level ofaggregate output does the consumption curve cross the 45° line?Explain your answer and show this on the graph.What is it mean by full price and income when discussing household consumption?hich theory of consumption best explains the consumption behavior of consumers of our economy? Question No: 02 [Marks: 10] If the State Bank started printing large quantities of Pakistani Rupees (Rs), what would happen to the number of Pakistani Rupees a dollar could buy? Why? Question No: 03 [Marks: 10] Deseribe the difference batuuean foreian diract investmet and foraion nortfolie invastment Who is mora likelu to
- Find the value of MPC when multiplier is stated as 0.97If average income goes from $30,000 to $33,000 and consumption increases from $29,000 to $31,000, the marginal propensity to consume is Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. 67 b 1.5 1.06 0.96QUESTION 1An individual lives for two periods and decides how much to consume in each period.- In the first period his consumption equals C1 and his income Y1 = 200- In the second period his consumption equals C2 and his income Y2 = 100He can save or borrow money in the first period to finance his consumption in the second period.The interest rate he gets in case he saves or has to pay in case he borrows money equals 7%.Determine the budget constraint of this individual. C2 = −0.935·C1 +314C2 =−1.07·C1 +314C2 =−0.8·C1 +314C2 =−1.08·C1 +314 QUESTION 2The total production of a good y is determined by the production function y = 3L2/3K1/3, where L is labour input and K capital input.The reward (factor prices) for labour and capital are, l = 27 en r = 2, respectively.The producer needs to produce 9000 units of good y.How much units of labour will he hire if he wants to miminize his total costs? 1587,4839,953000515,23 QUESTION 3A good is traded on a perfectly competitive…