ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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61)If the marginal propensity to save is 0.2, then a $10,000 decrease in disposable income will
Select one:
a. increase consumption by $2,000.
b. increase consumption by $8,000.
c. decrease consumption by $8,000.
d. decrease consumption by $2,000.
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- carrow_forwardSuppose that Maria spends 84,500 on consumption, her disposable income is $90,000 and her Marginal Propensity to Save is .15. What does Maria's autonomous consumption equal? Select one: a. $5,500 b. $6,500 c. $7,000 d. $8,000arrow_forward2. Public consumption of a country (two sectors) is indicated by the function C = 60 + 0.4Y. Calculate:a. Find the saving function.b. If the investment that occurs is 300, determine the balance national income.c. What is the consumption of the people of the country if the national income is 400.d. How much is the savings of the people of the country if the national income is 400.e. Make a graphical sketch of the consumption and saving functions in one image. Please solve subparts d,e thank uarrow_forward
- 7. Assume consumption is represented by the following: C = 400+.75Y. Also assume that planned investment (I) equals 100. a. Given the information, calculate the equilibrium level of income. b. What is the savings function? c. Given the information, calculate the level of consumption and saving that occurs at the equilibrium level of income. d. Suppose planned investment increases by 100. i. Calculate the new equilibrium level of income. ii. Given your answer, what is the size of the multiplier for this economy? e. Use the Keynesian cross diagram to reflect both equilibrium output.arrow_forward4. Benjamin's income increases from $40,000 to $44,000. His consumption increases from $35,000 to $36,000. What is Benjamin's Marginal Propensity to Save? A..19 B..75 C. .81 D. 1.25arrow_forwardTyped plz and asap thanks Please give me quality answer wrong answer will not b acceptedarrow_forward
- Income choices: a. What will a 2% increase in tax rates do to disposable income? b. If Eduardo’s disposable income increases from $1,200 to $1,700 and his level of saving increases from minus $100 to a plus $100, his marginal propensity to save is:arrow_forward2. Public consumption of a country (two sectors) is indicated by the function C = 60 + 0.4Y. Calculate:a. Find the saving function.b. If the investment that occurs is 300, determine the balance national income.c. What is the consumption of the people of the country if the national income is 400.d. How much is the savings of the people of the country if the national income is 400.e. Make a graphical sketch of the consumption and saving functions in one image. Please solve sub parts a,b,c thank uarrow_forward
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