If mpc = 0.8 and the additional income is P12,000, how much is the additional consumption? How much is the additional savings? show the computations
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If mpc = 0.8 and the additional income is P12,000, how much is the additional consumption? How much is the additional savings? show the computations
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- Find the Income when the consumption is $13240 million and the savings are $ 9991 millionit is given that the ratio of APS to APC is 2/7 Calculate the ratio of Consumption to savingsWhich of the following is correct? For every additional dollar in Lifetime_value, Incore is expected to increase by $0.042 For every additional dollar in Lifetime_value, Income is expected to decrease by $0.042 For every additional dollar in Income, Lifetime_value is expected to decrease by $0.042 For every additional dollar in Income, Lifetime_value ($) is expected to increase by $0.042
- Eva lives for two periods and wants to have equal consumption in both. Her first period income is $Y subscript 1 and her second period income is $Y subscript 2. The interest rate is 7%. If Y subscript 1 = 81713, and Y subscript Training 2 = 80175, what is her optimal saving?Calculate the change in savings if the change in income is $1300 and the MPS is 0.23From the graph , calculate the MPS for the saving function.
- Suppose that you earn $320 in year 1 and will ean $720 in year 2. If you borrow money against your future income you will have and additional $576 to spend in year 1, and if you lend all of your current income you will have and additional $400 to spend in year 2. In both years you consume only food which costs $1 per kilogram in each year. What is the interest rate that you borrow and lend at? R= Let your MRS for food in year 1 with food in year 2 be given by the formula where F is the amount of food consumed this year and F is the amount of food consumed next year. Calculate your consumption bundle: F = F = Suppose the interest rate at which you can borrow and lend changes to 20%. Calculate your new consumption bundle: F = F2 = Which interest rate is preferred? The initial interest rate found in part 1 O The new interest rate, 20%Aggregate saving (in billions SA 25 0 -100 -200 S 400 800 900 Y Aggregate income (in billions) d) From the graph above, calculate the MPS for the saving function.Define disposable income