Answered: Al. (A) (B) (C) (D) (E) If the… | bartleby

Microeconomic Theory

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.4P

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Al.
(A)
(B)
(C)
(D)
(E)
If the multiplier equals 4, then the marginal propensity to save must be equal to:
0.25.
0.4.
0.5.
0.75.
the marginal propensity to consume.

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6. Suppose consumption is $10,000 when income is $9,000 and the marginal propensity to saveequals 0.1. When income increases to $9,500, consumption will be:(A) $8,500. (B) $10,450. (C) $10,500. (D) $10,050.
3. If Jack received a $1,000 bonus and his marginal propensity to save is 0.15, his consumptionrises by______ and his saving rises by_______.(A) $150; $500 (B) $850; $150 (C) $150; $850 (D) $1,000; $150
If a household’s income falls from R12 000 to R10 000, and its consumption fallsfrom R9 500 to R8 000, then: choose the correct answer(a) The marginal propensity to consume is ‐0.8. (b) The marginal propensity to consume is 0.75. (c) The marginal propensity to consume is 0.2. (d) The marginal propensity to save is 0.15
4. If you save $20 when you experience a $200 rise in your income:(A) your marginal propensity to save is 0.2. (B) your marginal propensity to consume is 0.9.(C) your marginal propensity to consume is 0.1.(D) your marginal propensity to consume is 0.8.
Consider the following table, which shows a household's disposable income and consumption expenditures. All values are expressed in dollars. Compute the marginal and average propensities to consume for each level of income and fill in the table. (Round your responses to two decimal places) Disposable Income (Y) 0 300 600 900 1,200 1,500 Desired Consumption (C) 420 660 900 1,140 1,300 1,620 MPC-ACIAY NA APC = C/Y₂ NA
2. The marginal propensity to save is 0.15, the marginal propensity to consume:(A) is 1.15. (B) is 0.85. (C) is 0.15. (D) cannot be determined by the given information.
Fill in the blanks in the following table. Assume for simplicity that taxes are zero. Also assume that the values represent billions of 2012 dollars. (Round your responses to the nearest whole number.) Saving (5) Real GDP (Y) $800 $900 $1,000 $1,100 $1,200 Consumption (C) $640 $720 $800 $880 $960
Consumption/Savings 1000 800 600 400 200 0 -200 CL 200 400 600 800 1000 1200 1400 1600 Income 5) Refer to the graph above to answer this question. What is the value of the MPC? A) 0.25. B) 100.C) 0.8 D) 0.6. E) 0.4.
Output/Income Consumption Savings MPC MPS APC APS 0 80 0-80 = -80 - - - - 100 140 100-140 = -40 0.6 0.4 1.4 -0.4 200 200 200-200=0 0.6 0.4 1 0 300 260 300-260=40 0.6 0.4 0.8666666667 0.1333333333 400 320 400-320=80 0.6 0.4 0.8 0.2 a. Assume Y= 400 Calculate the level of Consumption Hint: plug in 400 for Y into the Consumption and Savings equations, Also, calculate the following APC (C/Y); APS (S/Y) b. Calculate the Multiplier 1/(1-MPC) c. Assume Y= C + I + G + X I=20; G=30 X=0 Use the equation derived in (d) above; use this to Plug in the value of C into the equation. I=Busines Investments G= Government Spending X=Net exports
if Government Spending (G) is $200 million, Tax Revenue (T) is $260 millio Consumption is $300 million, and GDP P(Y) is 780 millionPrivate saving is
A2) Economics Assuming that the government intends to adopt a ride-sharing scheme to solve the problem of rush hour traffic congestion, the ride-sharing scheme is therefore evaluated. Known: B0 = 0, Bt = 60, t = 1, 2,… (for a perpetual gain); C0 = 1,000, Ct = 0, t = 1, 2,…. Among them, t represents the year, and Bi and Ci are divided into the benefit and cost of the i-th year. Assuming that inflation and government taxation are not considered, if the discount rate is 5%, try to use the present value criterion, the internal rate of return and the profit-to-price ratio method to evaluate whether this multiplication plan is feasible?
7. The marginal propensity to save is 0.15, the marginal propensity to consume: (A) is 1.15. (B) is 0.85. (C) is 0.15. (D) cannot be determined by the given information.

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