Find out(i) if MPC is .75, what will be theMPS?(ii) if APS is .3, what will be the APC?

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Answered: Find out (i) if MPC is .75, what will…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Exercise 4. You are a manager at a certain factory that designs small gadgets. The factory has been quite successful in the past years. Your CEO is wondering whether or not it is a good idea to expand the factory this year. The cost to expand the factory is $1.5M. Doing nothing will result in expected $3M in revenue if the economy stays good and people continue to buy plenty of gadgets, but only $1M in revenue is expected if the economy is bad. On the other hand, expanding the factory carries an expected $6M in revenue if economy is good and $2M if the economy is bad. Assume there is a 40% chance of a good economy and a 60% chance of a bad economy. Also, assume the costs of operating the factory account to $.5M if the factory is expanded and $.3M if not. a. Illustrate a Decision Tree showing these choices. b. What should you do?
Average Propensities to Consume and to Save Disposable Income Consumption Saving APC APS P0 P2, 000 P2, 000 2,000 3,600 4,000 5,200 6,000 6,800 8,000 8,400 10,000 10,000 12,000 11,600 a. Solve for Savings, APC and APS
What is the 'mps' ? a) 1/3 b) 2/3 c) 3/2 d) 1/2 e) 4
Answer 1 st is incorrect.. don't use chat gpt please..give correct answer it's a last chance
I need the answer as soon as possible
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
3
What is a spending plan? Importance of spending plan?
9- 9 - What is the ratio of savings to disposable income called? a) MPS B) cY NS) APS D) MRI TO) NS
Only typed answer and don't use chat gpt
The next three questions involve the following situation. Consider a closed economy in which I $100, 000, 000, 000, and T = $30, 000, 000, 000. $20, 000, 000, 000, G = $45, 000, 000, 000, Y = 1. What is total saving, S? (A) -$30 billion. (B) $35 billion. (C) -$15 billion. (D) $20 billion. 2. What is consumption? (A) $15 billion. (B) $35 billion. (C) -$15 billion. (D) -$35 billion. 3. What is private saving? (A) $15 billion. (B) $35 billion. (C) -$15 billion. (D) -$35 billion. 4. Which of the following assets performs best in times of demand-pull inflation? (A) Gold. (B) Agricultural real estate. (C) Stocks. (D) Bonds.
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

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Find out (i) if MPC is .75, what will be the MPS? (ii) if APS is .3, what will be the APC?