A
The blank when the current consumption is more than the future consumption.
A
Explanation of Solution
If Bryan values current consumption more than future consumption, he has a net − borrowing.
Introduction:
An intertemporal choice means how the consumer chooses to consume a good in the various time periods.
Net- saver as the name suggests the consumer is saving a good in the current period in order to consume in future.
Net borrower which means the consumer chooses to consume a good in the current time period and borrow from the future with the cost of borrowing.
B
The blank with the name of the reward to household for forgoing current consumption.
B
Explanation of Solution
The reward to households for foregoing current consumption is saving
Introduction:
An intertemporal choice means how the consumer chooses to consume a good in the various time periods.
Net- saver as the name suggests the consumer is saving a good in the current period in order to consume in future.
Net borrower which means the consumer chooses to consume a good in the current time period and borrow from the future with the cost of borrowing.
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Chapter 13 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
- 1. Make a written report about Consumer Aggregate 2.Adv and Disadv of consumer aggregate 3.Make a bullets that's related to Consumer Aggregatearrow_forwardGiven Table 12-5 below, fill in the values for saving. Assume there are no taxes. Table 12-5 National Income $7,500 8,000 8,500 9,000 Consumption $5,400 5,800 6,200 6,600 Use the editor to format your answer Savingarrow_forward1. Inventory is: Group of answer choices a. the total amount of goods that a company produces now, regardless of whether they've sold it or not. b. the stock of goods that a company produced last year, but had to sell for below cost. c. the stock of goods that a company produces now, but keeps to sell at a future time. d. the stock of goods that a company produces and sells in a given time perio 2. The four categories of expenditure (spending) in the economy are wages, rent, interest, and profit. Group of answer choices True Falsearrow_forward
- D7arrow_forward8) Firms A-E are involved in the production of some good. What is the total value added by all the firms in the production of this good? What did each firm add separately in value and what does it total? Stage of production Firm A Firm B Firm C Firm D Firm E Sales value of product $1,600 2,500 3,700 5,200 7,600arrow_forwardConsumption/Savings 1000 800 600 400 200 0 -200 Select one: 200 400 600 800 1000 1200 1400 1600 S Refer to the graph above to answer this question. What is the equation for the saving function? A. S=200+ 0.4Y. B. S=-200+ 0.6Y. X C. S-200+ 0.8Y. OD. S-200 +0.2Y. OE. S=200 - 0.2Y. Incomearrow_forward
- 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.arrow_forwardQuestion 4 Explain how does a decrease 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) Are there any substitution effect or income effect. Make sure you draw two figures, one for the borrowers and one for the lenders.arrow_forward5 Output and Consumption (in millions of dollars) Real GDP (Y) Consumption (C) Gross Investment (1) Government Purchases (G) 42 28 9 Ask Net Exports (NX) Mc Graw Hill -2 What is the equilibrium level of ouput? Multiple Choice O $42 million О $28 million $84 million $14 million Parrow_forward
- Question 23 esc K ✈1 moving to 1 The total income earned by residents of an economy is known as O gross national product O private disposable income O gross domestic product O national income none of the above A Moving to another question will save this response. O Type here to search ? Q A 12 W 13 # D LA Ai R % 5 16 10 1 hparrow_forwardQuèstion 4 "As disposable income increases, consumption:" O And saving both increase. O Decreases and saving increases. O And saving both decrease. O Increases and saving decreases.arrow_forward(12) When the consumption function lies above the 45-degree line, households (a) spend on consumption a decreasing percentage of any increase in income. (b) save all of any increase in income. (c) are dissaving. (d) spend on consumption an increasing percentage of any increase in income.arrow_forward