Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 9, Problem 7E
To determine
(a)
To write:
| Y | C | I | G | X |
| $500 | $500 | $10 | $20 | $60 |
| $600 | $590 | $10 | $20 | $40 |
| $700 | $680 | $10 | $20 | $20 |
| $800 | $770 | $10 | $20 | $0 |
| $900 | $860 | $10 | $20 | -$20 |
| $1000 | $950 | $10 | $20 | -$40 |
The linear equation of consumption function
To determine
(b)
To write:
| Y | C | I | G | X |
| $ 500 | $500 | $10 | $20 | $60 |
| $600 | $590 | $10 | $20 | $40 |
| $700 | $680 | $10 | $20 | $20 |
| $800 | $770 | $10 | $20 | $0 |
| $900 | $860 | $10 | $20 | -$20 |
| $1000 | $950 | $10 | $20 | -$40 |
The investment function.
To determine
(c)
To write:
| Y | C | I | G | X |
| $ 500 | $500 | $10 | $20 | $60 |
| $600 | $590 | $10 | $20 | $40 |
| $700 | $680 | $10 | $20 | $20 |
| $800 | $770 | $10 | $20 | $0 |
| $900 | $860 | $10 | $20 | -$20 |
| $1000 | $950 | $10 | $20 | -$40 |
The net exports function.
To determine
(d)
To write:
| Y | C | I | G | X |
| $ 500 | $500 | $10 | $20 | $60 |
| $600 | $590 | $10 | $20 | $40 |
| $700 | $680 | $10 | $20 | $20 |
| $800 | $770 | $10 | $20 | $0 |
| $900 | $860 | $10 | $20 | -$20 |
| $1000 | $950 | $10 | $20 | -$40 |
The aggregate expenditure functions.
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Calculate business investment for the following data:
Y = 55,000
C = 40,000
G= 5,000
NX= - 2000
A.) Investment is $9,800
B.) Investment is 12,000
C.) Investment is 3600
D.) Investment is 1,200
For the relationship graphed below:
Household
Spending = C
($/month)
a
Question 7
Homework Unanswered
b
с
d
3,200
2,300
1,400
500
0
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1,000
2,000 3,000 Total Income = Y($/month)
Spending Function
total income is the independent variable and household spending is the dependent variable.
total income is the dependent variable and household spending is the independent variable.
total income is unrelated to household spending.
total income is an exogenous variable, or shift factor.
In economics, what does the term ceteris paribus mean when analyzing the relationship between two variables? A. All other things being equal or held constant B. The direct relationship between two variables C. The inverse relationship between two variables D. The absence of any relationship between two variables
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