Consider an economy described by the following:C= $3.15 trillion1 = $1.2 trillionG= $2.8 trillionT= $3 trillionf=0.5mpc=0.8d=0.2x=0.2NX = $-0.5 trillionThe simplified expression for the consumption function is:O C= 3.15+(1-0.8)YO C=0.75+(1-0.8)YO C=3.15+0.8YO C=0.75+0.8Y

Here's the breakdown of the terms in the expression:C: Represents consumption0.75: This is a…

Answered: Consider an economy described by the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that the consumption function is given by C = 500 + 0.75 (Y − T). If income increases by 100, then saving will increase by
Suppose that Y=MX+b, where Y=consumption, b=consumption at zero income, M=slope, and X=income(i) Are Y and X positively related or are they negatively related?(ii) If graphed, would the curve for this equation slope upward or slope downward?(iii) Are the variables Y and X inversely related or directly related?(iv) What is the value of Y if b=10, M=.50, and X=200?(v) What is the value of X if Y=100, b=10, and M=.25?
Q4) Refer to the information provided in table below to answer the questions that follow. Y C S 0 100 180 190 1. Find the consumption, if the consumption function is: C= 120 +0.2Y. 2. Find aggregate saving. 3. Illustrate that by graph from the information provided in table.
The algebraic form of the consumption function is: Disposable Income YD-Y-T $0 Consumption Spending C = C₁ + MPC(YD) Investment Spending | $1,000 $250 $1,000 $1,750 $250 $2,000 $2,500 $250 $3,000 $3,250 $250 $4,000 $4,000 $250 $5,000 $4,750 $250 $6,000 $5,500 $250 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. C=$1,000+ 0.25(Y-T) = $1,000+ 0.25(YD). b C = $250 +0.75(YT) = $250 +0.75(YD). с C = $1,000+ 0.75(Y-T) = $1,000+ 0.75(YD). d C=$750 +0.75(Y-T) = $750 +0.75 (YD). Your answer
Refer to the below figure: the saving function can be given as: Aggregate consumption (C) 270 200 130 60 450 100 S = -60 -0.3Y O S = -60+ 0.3Y O S = 60+ 0.7Y O S = -60 -0.7Y O S = -60 +0.7Y 200 300 Aggregate income (Y)
Question 34 Identify the correct statement with respect to consumption and saving function. Both the consumption function and the saving function have negative slopes. As disposable income declines, consumption and saving increase. O The consumption function has a negative slope while the saving function has a positive slope. As disposable income rises, consumption and saving increases. The consumption function has a positive slope while the saving function has a negative slope.
The following table shows data for the economy before the decrease in saving. Suppose that the decrease in saving causes consumption to rise from $280 million to $320 million. Assume Say's law holds in this economy. Fill in the data for the economy after the decrease in saving. Before Saving Decrease After Saving Decrease Consumption (C) $280 million $320 million Investment (I) $200 million $ million Government Purchases (G) $250 million $ million Exports (EX) $500 million $500 million Imports (IM) $300 million $300 million As a result of the decrease in saving, total expenditures will .
function is given by: C = 200 + 0.75(Y - T). Planned investment (I) is 100, government purchases (G) and taxes (T) are both 100. (a) Graph planned expenditure as a function of income;.
1) Consider the following economy: Č = 3,1 = 1.5, Ğ = 2.65,T = 2, f = 0.5, d = 0.1, a = 0.8 %3D %3D %3D A) Write the mathematical expression of the consumption function B) Write the mathematical expression of the investment function C) Find the IS curve and graph it.
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The graph represents consumption (C) as a function of disposable income (DI). Assume the consumption function is linear. What is the value of the marginal propensity to consume (MPC)? Round the value of the MPC to two decimal places. MPC = Consumption $1050 900 750 600 450 300 150 0 $150 300 450 600 C = DI C 750 900 1050 Disposable income
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

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Consider an economy described by the following: C= $3.15 trillion 1 = $1.2 trillion G= $2.8 trillion T= $3 trillion f=0.5 mpc=0.8 d=0.2 x=0.2 NX = $-0.5 trillion The simplified expression for the consumption function is: O C= 3.15+(1-0.8)Y O C=0.75+(1-0.8)Y O C=3.15+0.8Y O C=0.75+0.8Y