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ella [17]
4 years ago
12

. Homer Simpson wins a lottery prize. As a result, the Simpson family increases its consumption by $1,000 at each level of after

-tax income. ("Income" does not include the prize money.) How does this change affect their consumption function?
Business
1 answer:
madam [21]4 years ago
4 0

Answer:

Their consumption function would shift upwards

Explanation:

Their consumption function shifts upward because the lottery prize has given them an autonomous consumption of $1000. This prize is independent of income. At each level of income, consumption rises by $1000. Causing consumption spending to be shifted upward by $1000. The marginal propensity to consume is unaffected because increase in consumption is the same at each level of disposable income.

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A decrease in government spending and the enactment of an investment tax credit would definitely cause a. the quantity of loanab
Vesna [10]

Answer:

The correct answer is option d.

Explanation:

A decrease in government spending will reduce the demand for loanable funds. This will cause the demand curve for loanable funds to shift to the left.  

The leftward shift in the demand loanable funds will cause the interest rates to decrease. This reduction in the interest rate and investment tax credit will cause the quantity of loanable funds traded to increase.

8 0
4 years ago
A lot of estimates go into the final calculation to determine market size, and each component needs to be as precise as possible
natulia [17]

True, A  lot of estimates go into the final calculation to determine market size, and each component needs to be as precise as possible. Otherwise, the errors in the estimation get compounded.

What does market size actually mean?

  • The total number of prospective customers for a good or service inside a certain market, along with the potential revenue from those sales, make up the "market size."
  • For a number of reasons, it's critical to determine and comprehend market size.

What is an example of market size?

  • For instance, a shoe company might find 100,000 people who are interested in its product, but data on income and accessibility reveals that only half of them have the resources to make a purchase.
  • The market that is open in that situation has 50,000 potential customers.

Learn more about market size

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3 0
1 year ago
What is the appropriate fiscal policy when an economy goes into recession?
notsponge [240]
The appropriate fiscal policy for when an economy goes into recession would be the expansionary fiscal policy.
7 0
3 years ago
Carter's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $45.00, what is its nominal (not eff
Lera25 [3.4K]

Answer:

8.89%

Explanation:

The answer is 8.89%

Here is how we arrived at this.

Dividend = 1$ times 4

= $4 annually

Then we calculate for the nominal rate of return.

This is equal to dividend / price.

= $4/ $45

= 0.0889

To convert this to percentage

0.089 x 100

= 8.89% is the nominal annual rate of return.

3 0
4 years ago
Which term describes the restoration of the insured person to the financial position he or she was in before the loss occurred?.
Ksivusya [100]
The term that describes the restoration of the insured person to the financial position that he or she was in before the loss occurred is called indemnity. This allows protection to the insurer in case of loss and damage and will protect against any legal quandry that may occur.
4 0
4 years ago
Read 2 more answers
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