Refer to the figure at right. The figure represents the saving function for the consumer. Point A represents OA. a situation in which saving is positive. OB. the amount of autonomous consumption. OC. a situation in which saving is negative. OD. the point at which saving equals zero. Planned Real Saving ($ per year) Real Disposable Income ($ per year) O
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- Assume an economy where there are two producers: a wheat producer and a bread producer. In agiven year, the wheat producer grows 3 million tonnes of wheat, of which 2.5 million tonnes aresold to the bread producer at $30 per bushel, and 0.5 million tonnes are stored by the wheatproducer to use as seed for next years crop. The bread producer produces and sells 100 millionloaves of bread to consumers for $3.50 per loaf. Determine GDP in this economy during this yearusing the product and expenditure approaches.Based on the information presented below, what is the equation representing the saving for this economy? GDP (Y) $0 100 200 300 Cunsumption (C) $60 120 180 240 Oa. S = -60 + 0.6Y O b. S = 60+ 0.4Y O c. S = -40 +0.75Y O d. S= -60+ 0.4Y Saving (S) S-60 -20 20 60 Investment (1) $100 100 100 100Saving = a. disposable income minus taxes b. income minus taxes c. 1 – MPC d. disposable income minus consumption
- Consumption/Savings 1000 800 600 400 200 0 -200 Select one: 200 400 600 800 1000 1200 1400 1600 S Refer to the graph above to answer this question. What is the equation for the saving function? A. S=200+ 0.4Y. B. S=-200+ 0.6Y. X C. S-200+ 0.8Y. OD. S-200 +0.2Y. OE. S=200 - 0.2Y. IncomeAn economy's consumption function is depicted in the table below. Disposable Income (Y) Planned Investment Consumption (C) ($ billions) ($ billions) ($ billions) 0 50 120 50 240 50 360 50 480 50 600 50 a. When disposable income is equal to $240 billion total expenditures (including investment) equal OA. $342 billion. OB. $50 billion. b. Therefore, in this model when investment is included, when the disposable income is $240 billion, saving must be equal to OB. $-102 billion. O C. -0.22. OA. $-52 billion. 100 196 292 388 484 580 OC. $240 billion. OD. $292 billion. OD. $50 billion.Evample 27. If saving function for an economy is given as: S =-500 + 0.2Y and investment expenditure is R 100 crores, then determine: (i) Level of income when saving will become zero; i) Level of income when saving is equal to investment.
- which of the following occurs when disposable income is zero? Select one: a. consumption is negative b. consumption must be zero c. none of the given options d. saving must be zeroThe following table shows data for the economy before the decrease in saving. Suppose that the decrease in saving causes consumption to rise from $280 million to $320 million. Assume Say's law holds in this economy. Fill in the data for the economy after the decrease in saving. Before Saving Decrease After Saving Decrease Consumption (C) $280 million $320 million Investment (I) $200 million $ million Government Purchases (G) $250 million $ million Exports (EX) $500 million $500 million Imports (IM) $300 million $300 million As a result of the decrease in saving, total expenditures will .5. Explain the difference between investment as the term is used by most people and investment as defined by an economist in two paragraphs.
- Q.3.4 Year (Base year) 2018 2019 2020 2021 Cost of a basket (R) of consumer goods/services Explain, with the aid of an equation, the components of the consumption function. 1850 2190 2380 2560hich theory of consumption best explains the consumption behavior of consumers of our economy? Question No: 02 [Marks: 10] If the State Bank started printing large quantities of Pakistani Rupees (Rs), what would happen to the number of Pakistani Rupees a dollar could buy? Why? Question No: 03 [Marks: 10] Deseribe the difference batuuean foreian diract investmet and foraion nortfolie invastment Who is mora likelu to1. A firm produces 450 units production by using capital and labor in a day and sell it at $0.65/unit. If the firm's MPPL is 35Vx², what is the amount of production after 22 units labors employed and total revenue?