Hello, I would like help on this assignment. I sent it earlier and the first three subparts were answered but I was told that I need to submit again to have the solution of the rest. Thank you Assume there are 2 people Xavier with a Marginal propensity to consume (MPC) of 80% and Francis with a Marginal Propensity to save (MPS) of 10%. Xavier enjoys life and has a minimum consumption of $10,000 without any income, while Francis is more modest, with a minimum consumption of $7,500 without any income.Demonstrate and explain the income-expenditure model for Xavier and Francis on separate graphs with income ranging from 0 to $100,000 in $20,000 increments.Compare the minimum income levels where savings begins for Xavier and Francis.How does the difference in MPC affect the economies for each state?If the government decides to take all savings above $2,000, is this fair to Xavier? Francis? e. How might this change their behavior? How is this relevant to discussions about wealth inequality? How are individual choices relevant to wealth inequality?

4.) The above government policy is not fair to Xavier but on the other hand, is fair to Francis.…

Answered: Hello, I would like help on this…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Hello, I would like help on this assignment. I sent it earlier and the first three subparts were answered but I was told that I need to submit again to have the solution of the rest.

Thank you

Assume there are 2 people Xavier with a Marginal propensity to consume (MPC) of 80% and Francis with a Marginal Propensity to save (MPS) of 10%. Xavier enjoys life and has a minimum consumption of $10,000 without any income, while Francis is more modest, with a minimum consumption of $7,500 without any income.
1. Demonstrate and explain the income-expenditure model for Xavier and Francis on separate graphs with income ranging from 0 to $100,000 in $20,000 increments.
2. Compare the minimum income levels where savings begins for Xavier and Francis.
3. How does the difference in MPC affect the economies for each state?
4. If the government decides to take all savings above $2,000, is this fair to Xavier? Francis? e. How might this change their behavior? How is this relevant to discussions about wealth inequality? How are individual choices relevant to wealth inequality?

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