Equation for consumption is C=40/(0.8Y) where Y= yearly income = $400. A) what is the level of consumption B) what is the average propensity to consume
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Equation for consumption is C=40/(0.8Y) where Y= yearly income = $400.
A) what is the level of consumption
B) what is the average propensity to consume
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- assume you are given a $100 raise, and decide to save $20 of that money. also assume that if you make zero income in a year, you will still spend $7000. a.) what is your consumption function? b.) if you earn $20000 in a year how much will you spend? c.) will you be able to save while earning the above income?Among the components of personal consumption expenditures (C) the spending of durable goods that last 3 years or more is the greatest in the U.S. households. 1) True 2) FalseSuppose that you are a PIH consumer. You expect to live for another 24 years. You expect to work for another 19 years. You just learned that you will receive a permanent raise at your job of $1700. Answer the following: (a) How much extra do you consume this year? (b) What is your marginal propensity to consume out of this income change?
- You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)Find the saving when the income is 50 and consumption is 60Q2)Complete the following table and illustrate by graph following variables (TFC. TVC. TC. MC) TFC TVC MC ATFC ATVC ATC 20 35 38 40 55
- 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 2560Households' consumption function is: C=100+0.7Y Households are more pessimistic about the future and they decide to reduce their consumption by 10 units. What is the intercept of the consumption function now? Type your numeric answer and submitConsider the following table, which shows a household's disposable income and consumption expenditures. All values are expressed in dollars. Compute the marginal and average propensities to consume for each level of income and fill in the table. (Round your responses to two decimal places) Disposable Income (Y) 0 300 600 900 1,200 1,500 Desired Consumption (C) 420 660 900 1,140 1,300 1,620 MPC-ACIAY NA APC = C/Y₂ NA
- it is given that the ratio of APS to APC is 2/7 Calculate the ratio of Consumption to savingsIf a household’s income falls from R20 000 to R17 000 and its consumption falls from R18 000 to R15 000, thenits:a) marginal propensity to consume is –0,67.b) marginal propensity to consume is 0,88.c) marginal propensity to consume is 0,20.d) marginal propensity to save is zero.e) marginal propensity to save is 0,12.A consumer's current income (y) is 200 and the future income ( t.') is 240. A current lump sum tax (t) of 10 is paid and the tax in the next period (t) is 15. The real interest rate is 20% for each period. Please assume that current and future consumption are complements. and the consumer always prefers to have one unit of current consumption and two units of consumption in the future. Calculate the optimal current and future consumption and the optimal current and future savings. Is the consumer a lender or a borrower? How does he she. as a lender or a borrower. affect the future consumption?