Diddy spends $1,500 on a new laptop to use in his business in San Francisco. The laptop was built in Canada. Investment spending and net exports both increase by $1500, GDP increases by $3000 Consumption spending increases by $1500, net exports decreases by $1500 O Consumption spending and net exports both increase by $1500, GDP increases by $3000 O Investment spending and GDP both increase by $1500 O Investment spending increases by $1500, net exports decreases by $1500 Consumption spending and GDP both increase by $1500 Investment spending and net exports both increase by $1500

Diddy spends $1,500 on a new laptop to use in his business in San Francisco. The laptop was built in Canada. Investment spending and net exports both increase by $1500, GDP increases by $3000 Consumption spending increases by $1500, net exports decreases by $1500 O Consumption spending and net exports both increase by $1500, GDP increases by $3000 O Investment spending and GDP both increase by $1500 O Investment spending increases by $1500, net exports decreases by $1500 Consumption spending and GDP both increase by $1500 Investment spending and net exports both increase by $1500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Explain how does adecrease in the current income y affect the consumer’s consumption-saving decision. In particular,explain: 1) How will current consumption c, future consumption c′, and savings s change; 2) Arethere any substitution effect or income effect. Make sure you draw two figures, one for the borrowersand one for the lenders
If your planned consumption expenditure is $600 per month and your income is $500 per month, your O a. savings is increasing by $100 per month. O b. induced consumption is $600. O c. savings is decreasing by $100 per month. O d. autonomous consumption must be zero per month. O e. autonomous consumption is -$100 per month.
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Which of the following changes in personal income tax would lead to the smallest increase in consumption? O a. O b. a $15 000 decrease in taxes, if MPC equals 0.6 O c. a $30 000 decrease in taxes, if MPC equals 0.25 Oe. a $20 000 decrease in taxes, if MPC equals 0.5 O d. a $12 000 decrease in taxes, if MPC equals 0.75 a $10 000 decrease in taxes, if MPC equals 0.2
Because of scarcity, people are more likely to do what? squander resources increase the profit margin use resources wisely The MOST important factor affecting consumer spending is O the level of current consumer debt O the amount of assets held by consumers such as homes, cars, stocks, or bonds the expectations of consumers of what the economy will be in the future © the level of current consumer income
(Figure: Coffee and Ice Cream I) Kemala spends her income on ice cream and coffee, and coffee sells for $1 a cup. If ice cream sells for $6 per gallon, Kemala will purchase: Coffee 12- (cups) 11 10 98865 7 4 3 2 1 0 U₁ O 1 gallon. O 6 gallons. O 8 gallons. 2 gallons. U₂ 1 2 3 4 5 6 7 8 9 10 Ice cream (gallons)
4. Deriving net exports By definition, net exports from Japan are equal to exports from Japan minus imports into Japan. In a hypotheticall two-country world, imports into Japan are equal to exports from the United States. So the value for net exports from Japan is equal to exports from Japani minus exports from the United States, Graphically, at each exchange rate, the value for net exports is the horizontal distance from U.S. exports to Japanese exports. Use the graph input tool to answer the following questions. You will not be graded on any changes you make to this graph. (Note: To avoid dealing with decimal places, this calculator reports the price of yen in terms of dollars per 1,000 yen. That is, the price on the vertical axis is the dollar price of a 1,000-yen note instead of a single yen. As you have already seen, a price of 8 dollars per 1,000 yen is the same as 125 yen per dollar. Once you enter a value in a white field, the graph and any corresponding amounts in each grey…
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The city of Joslyn has three sources of revenue: borrowing, proprietary income from running the local electric power utility, and taxes. Last year, its total revenue was $150 million. If it received $10 million from running the electric power utility and borrowed $40 million, how much did it collect in taxes? Assume Joslyn's total revenue is $150 million. O $100 million O $110 million O $140 million O Nothing