True or False: Personal Consumption Expenditures account for about 25% of GDP. Spending on Consumer Durable Goods tends to be very stable from year to year. Sales of used goods are included in GDP at  35% of their original sale price.

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

A: The households can distinguish between capital expenditure and current expenditure. Capital…

Q: Consumers become pessimistic about the state of the economy and futureproductivity growth.

A: If consumers become pessimistic about the state of the economy and futureproductivity growth, the…

Q: The value of MPS is 0.93 Calculate MPC

A: We know that given the value of MPS we can easily calculate the value of MPC using the…

Q: The multiplier in the economy is 8.5 and the change in income is $3200 million What would be the…

A: The data being presented in the question is:- Multiplier = 8.5  Change in income = $3200 million…

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: The following is a hypothetical estimate of a demand curve for butter over the period 2001-10. Qu =…

A: Qd = 145 - 1.5P - 0.001Y + 2Pm   Note:- As per the guidelines we can solve only the first 3 parts of…

Q: Suppose a change in income of $5,100 causes a change in consumption of $2,600. What is the MPS?…

A: In economics, the Marginal Propensity to Save (MPS) is the fraction of an increase in income that is…

Q: Calculate the value of change in consumption if change in income is $2200 and MPC is 0.34

A: (Q) Calculate the value of change in consumption if a change in income is $2200 and MPC is 0.34

Q: When unwanted inventories pile up in retail stores, how is production affected?  What are the steps…

A: When the inventories pile up in retail stores, then the stores will first try to clear the stores by…

Q: Saving in the economy Multiple Choice Occurs when current spending is less than current incomes. and…

A: Saving=Income-consumption From the above equation, we can say that the saving occurs when the…

Q: 3) The value for net exports in billions of dollars is A) -200. B)-150 C) 50. D) 250.   4) The…

A: 3) The value for net exports in billions of dollars is A) -200. B)-150 C) 50. D) 250…

Q: 3. Supply and demand for loanable funds The following graph shows the market for loanable funds in a…

A: Demand for loanable funds shows the negative relationship between interest rate and quantity of…

Q: At Charlic's bakery, the MPL, is -12. Does this mean her average product must also be negative?…

A: MPL A marginal product of labor refers to a change in the level of output due to hiring an…

Q: A media company wants to know how much consumers spend in a closed economy. The answer is not…

A: Here in the mentioned question value of Consumption (C) is asked. We can calculate it with the help…