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solmaris [256]
3 years ago
12

Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increas

es by $1, consumption increases by 50¢. Suppose further that last year disposable income in the economy was $450 billion and consumption was $400 billion.
From the preceding data, you know that the level of saving in the economy last year was $_______ billion and the marginal propensity to save in this economy is_______ .
Suppose that this year, disposable income is projected to be $650 billion. Based on your analysis, you would expect consumption to be $______ billion and saving to be $______ billion.
Business
1 answer:
evablogger [386]3 years ago
4 0

Answer:

The level of saving =  $450 billion - $400 billion= $50 billion

Marginal propensity to save = 1- marginal propensity to consume (MPC)=0.5

Expected consumption

MPC=  change in Consumption/ change in income 200 billion * 0.5 = $100billion

Therefore consumption = 100 billion + 400 billion = $500 billion

Saving = $650 billion - $500 billion=  $ 150 billion

Explanation:

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A fire-breathing winged serpent adores crunching biscuits more than anything on earth, subsequently his name, the Muffin Dragon. An awesome anecdote about basic financial matters as it identifies with this mythical dragon and merciful yet poor people who live in a once-over mansion in the forested areas

Explanation:

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6 0
3 years ago
Mohammad was an employee in the new product development department of Estay Inc. Mohammad was directly involved in the developme
NemiM [27]

Answer:

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Mohammad cannot share confidential information with an external competitor even when he is no longer in the service of the firm.

The only option left for Mohammad is if Estay gives him approval to share the piece of information.

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3 years ago
An example of an intermediate good will be:
OlgaM077 [116]

Answer:

b. steel purchased by the aircraft manufacturers.

Explanation:

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6 0
2 years ago
A monopoly firm's use of a tariff provides it with additional protection because the tariff:
notsponge [240]

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Option C

<u>Explanation:</u>

A monopoly business is a price-maker, even through the amount, it generate it can control the market rate. When selling less and it can sell far less and can sell more and sell just because the price drops. when making less because it can sell more.

This is due to the fact that the tariff basically transfers the profits out of the international monopolist to the national government.

The monopolist's revenues are limited to an amount provided by the Horizontal stripe when the tax is introduced. Therefore, the tariff increases the total domestic social security as it reduces the profits of the foreign company.

8 0
3 years ago
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Answer:

Novak Company Journal. $

June 1

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5 0
3 years ago
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