In a simple economy the consumption function

Assignment Help Business Economics
Reference no: EM13837912

In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is C=750+0.6Y. Thus, automous consumption is _____ and the marginal propensity to consume is ______. A consumer chose income increases by 100$ will increase consumption by $______.

Fill in the blanks

Reference no: EM13837912

Questions Cloud

Explain how does provenance affect the value of art : How does provenance affect the value of art. How does this documentary affect the way you view fine art
Suppose that profit maximizing monopolists marginal costs : Suppose that a profit maximizing monopolist's marginal costs increase at all output levels. What is likely to happen to the quantity the monopolist produces, AND the price it charges?
Assume monopolist does not practice price discrimination : Assume a monopolist does not practice price discrimination. Which of the       following must be true for a monopolist at an output level where price (P) is equal to      marginal cost (MC)?
Age at which the event occurred : Also ask each person to write down the following information: The age at which the event occurred, to the best of his/her or your knowledge. State the reason/way that the age is known (e.g., photographs or parents confirmed it)
In a simple economy the consumption function : In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is C=750+0.6Y. Thus, automous consumption is _____ and the marginal propensity to consume is ______. A consumer chose income increases by 100$ will..
Suppose an economy is in long run equilibrium : Use the model of aggregate demand and aggregate supply to illustrate the initial equilibrium (call it point A). Be sure to include both short-run and long-run aggregate supply
What fiscal policies and monetary policies : What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?
Accurately describes how hot dog market is affected : Suppose the price of pork, an input in the production of hot dogs, increases. Which of the following accurately describes how the hotdog market is affected?
Calculate cash flow associated with the two heating model : Calculate the cash flow associated with the two heating models. What are the Net Present Values of the two models? Which system should be chosen? Calculate Equivalent Annual Annuity.

Reviews

Write a Review

Business Economics Questions & Answers

  Payoff table for game when mixer type uses mixed strategy

Recall from Exercise Ul the population of animals fighting over a food source worth 200 calories. Assume that, as in part (b) of that exercise, the cost of a fight is 150 calories per fighter. Assume also that a third phenotype exists in the populati..

  What was the nominal annual rate of return

Betson Enterprises distributes and markets the Big Buck video game, which allows players to "hunt" for elk, antelope, moose, and bucks without shivering outside in the cold. E-sports Entertainment in NYC purchased five machines for $6300 each and too..

  Illustrate what are the pros and cons of using expansionary

Illustrate what are the pros and cons of using expansionary and contractionary fiscal policy tools under the following scenarios: depression, recession, and robust economic growth.

  Case for federal reserve independence includes the idea

The case for the Federal Reserve independence includes the idea that

  Concerning the effects of fluctuating exchange rates

Government policies and regulations in host countries have a major effect on the operations of foreign companies. Which of the following does not reflect a typical regulation? Which of the following statements concerning the effects of fluctuating ex..

  What evidence of excess supply or excess demand

Give two examples of actions taken by a company, government, or organization whose effect is to prevent specific markets from reaching equilibrium. What evidence of excess supply or excess demand can you cite in these examples?

  Preferable than the distribution of household income

The distribution of family income is preferable than the distribution of household income because

  Elucidate the multiplier concept as it applies in this case

Elucidate the multiplier concept as it applies in this case. Illustrate what are the qualifications and limitations of the multiplier model.

  Q1 from 1947 to 1997 the cpi in us raised to 637 therefore

q1. from 1947 to 1997 the cpi in us raised to 637 therefore inflation rose 637. use this fact to adjust each of the

  How does this variation affect people and corporations

How does the taxation change if the income was $220,874? How does this variation affect people and corporations? Use the graph functions of Word or Excel to assist you-You will need two graphs

  Technology lovers vs technophobes

Select one market segment, and describe in one or two paragraphs what features the cell phone might have in order to be attractive to this segment.

  Whats the potential consequence of this policy on home

Government sometimes restricts international borrowing and lending by taxing them. In a two-period, two-country endowment model, if the Home's position is r^A

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd