Calculate the optimal current and future consumption and the optimal current and future savings. Is the consumer a lender or a borrower? How does he she. as a lender or a borrower. affect the future consumption?

Q: Addul has no income, he spend #500 of his income is #2000, he then spend #1900, what is his…

A: Disposable income can be defined as the income available to the consumers after they pay the tax and…

Q: Take the model of intertemporal consumer choice. A consumer's income in the current period is 179,…

A: Disposable income in current period = 179 - 17 = 162 Disposable income in future period = 178 - 32 =…

Q: Consider a two-period consumption saving model and let f1 and f2 denote the first and second period…

A: Utility function : f1+20f2 Where , c1 is consumption in period 1 , c2 is consumption in period 2…

Q: Using quarterly data from 1947 to the present, graph residential fixed investment relative to GDP…

A: The main aim of this question is to economic trends and patterns is vital to explain the dynamics of…

Q: Y-2VF-8 VY+2 Suppose the savings function of a country is S = and savings (S) are measured in…

A: Marginal propensity to save (MPS) refers to the proportion of a pay raise that a consumer saves…

Q: C= 250 + 0.75Yd G = 150 T= 200 |= 80 find the equilibrium level of income and private saving

A: Saving: It refers to the income that is not used by the people. The money which is saved by the…

Q: The table gives disposable income (DI), consumption (C), and savings (S) data for the country of…

A: Disposable income is the income available with the household sector for the consumption purpose. The…

Q: Define time preferences for consumption

A: The time preference of consumption shows the strength of satisfying the desire in present rather…

Q: Can MPC be negative or greater than 1? Why or why not

A: Marginal propensity to consume (MPC):  MPC measures the change in spending on consumption with the…

Q: None

A: Step 1: Planned spending is the amount of money that individuals, companies, governments, or other…

Q: Smith consumes all his income. Draw his consumption and saving schedule.

A: Consumption and saving The use of products and  the services by households is referred to as…

Q: What is it mean by full price and income when discussing household consumption?

A: Household consumption includes all purchases or consumption made to meet their daily needs by…

Q: Calculate consumption if APC is 0.88 and income is $400

A: The information being given is:- Average propensity to Consume = 0.88 Income = $400 Consumption = ?

Q: In the Fisher two-period model, if the consumer is a saver, consumption in periods one and two are…

A: Here, it is given that in the Fisher's two-period model, income effect if greater than substitution…

Q: Find the APC when consumption is said to be 192 and the income is 246

A: Basically in the given question Consumption value is = 192 Income is given = 246 APC = ?

Q: Disposable income will planned consumption will reduction in tax rates. and with a a) decrease;…

A: Disposable income=Personal income-Income taxes

Q: m is vegetarian and always eat a salad (s) with 2 glasses of green juice (g). His lity for the two…

A: Utility is satisfaction that is derived from the consumption of goods or services. Complement goods…

Q: There are some simplifying assumptions in order to generate simple expressions. One of these…

A: The interest rate is a proportion of the principal—the amount borrowed—that a lender charges a…

Q: assume you are given a $100 raise, and decide to save $20 of that money. also assume that if you…

A: a) Consumption function is of the form C= c+ bY Where c is autonomous Consumption ie when income is…

Q: Suppose that you are a PIH consumer. You expect to live for another 24 years. You expect to work for…

A: Marginal Propensity to Consume (MPC) is a concept that measures the change in consumption resulting…

Q: Calculate MPS if change in savings is $1300 and the change in income is $2300

A: The data presented in the question above is:- Change in savings = $1300 Change in income = $2300…

Q: Tom lives in two periods. In the first period, his income is fixed at $50,000; in the second, he…

A: An intertemporal budget constraint requirement is an imperative looked by a leader who is settling…

Q: Consumer's utility function for consumption in two periods is c1+30ln(c2). The interest rate is r,…

A: As per ordinal theory of consumer behavior, the consumer is in equilibrium at a point where…

Q: Disposable Income ($) Consumption ($) 1,000 800 1,100 880 1,200 960 1,300 1,040 1,400 1,120

A: The disposable income is the portion of the income which is left after the deduction of the taxes.…

Q: Calculate the value of income if consumption is $2000 and savings is $1200

A: The Given information is as follows:- Consumption expenditure = $2000 Savings expenditure = $1200 We…

Q: Calculate the value of income if APC is 0.51 and the consumption expenditure is $6400

A: The given information is as follows:- Average propensity to consume = 0.51  Consumption expenditure…

Q: A college professor is planning for his retirement years. His utility function is ?(?t , ?r ) = 3c t…

A: We are going to use the permanent income hypothesis to answer this question.

Q: Consider a two-period living consumer with a utility function, u(c)=sqrt(c). Suppose the real…

A: Given,  A two period living consumerUtility Function : U(c) =sqrt(c)Real Interest rate, R=10%Utility…

Q: If the personal disposable income is 400 and the consumption expenditure is 320 find out the average…

A: As per the question, Generally the personal disposal income is = 400 CONSUMPTION EXPENDITURE = 320…

Q: Question 1: Consumption and Savings Functions (Show your work) Disposable Income Consumption Saving…

A: A disposable income of 0 corresponds to consumption of 500 and savings of -500, according to the…

Q: Do households make a distinction between spending for current expenses and spending for capital…

A: Households in different countries have different sets of income patterns. People want to spend on…

Q: If Y = C+I, saving, S, is defined as S=Y-C and C=cY, what is the ratio of saving to income, S/Y a.…

A: The objective of the question is to find the ratio of saving to income, S/Y, given the equations Y =…

Q: Suppose that an economy's net investment flow is I(t) = 2t + 10t1/2. Letting K(0) is the initial…

A: Definition:   Capital accumulation is the development in growth through investments or benefits.…

Q: Saving is setting aside money you don't spend now for emergencies or for a future purchase. In an…

A: Savings function is a mathematical representation of the relationship between the disposable income…

Q: Consider an economy with two goods, consumption c and leisure 1, and a representative consumer. The…

A: Considering an economy with two goods consumption and leisure A consumer's daily leisure hours  l =…

Q: Consider the following two-period model of consumption and saving: Utility In(C1) + In(C2) C1…

A: Let's find the numerical solution for period 2 consumption, C2, step by step: Given:Utility…

Q: In a two-period model, an individual earns and consumes C1 in period 1 and only consumes C2 in…

A: Income in period 1 = $4500 Saving interest rate = 3.3% or 0.033 Consumes C1 in period 1 and only…

Q: Fill in the table and derive the consumption and saving functions. Disposable income 240 Consumption…

A: Break-even point of disposable income is when all of the disposable income is used for consumption…

Q: There is a direct relationship between spendable income and consumer spending

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Calculate the value of consumption if APC is 0.31 and income is $4499

A: The given information is as follows:- Average propensity to consume = 0.31 Income of the household =…