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pantera1 [17]
3 years ago
10

Consider the following model of a very simple economy. Household saving and investment behavior depend in part on wealth (accumu

lated savings and inheritance). In the late 1990's many were concerned with very large increase in stock value (a form of wealth) and it's possible effect on saving and investment.
The following consumption function incorporate wealth (W) as a determinant of consumption. We have the following information on consumption (C) and investment (I):

C=45+0.60Y+0.05W
I=100
W=800

We are ignoring the fact that saving adds to the stock of wealth.

Calculate the value of equilibrium Y,C, and savings (S). (Enter you responses as Integers. )
Business
1 answer:
Mekhanik [1.2K]3 years ago
6 0

Answer:

Equilibrium Y = 462.5 , Equilibrium C = 362.5 , Equilibrium S = 100

Explanation:

  • At equilibrium : Aggregate Demand = Aggregate Supply

[ AD = C + I ] = [ AS = C + S = Y ]

45 + 0.6Y + 0.05 W + 100 = Y → 45 + 0.6Y + 0.05 (800) + 100 = Y

45 + 40 + 100 + 0.6Y = Y → Y ; 185 + 0.6Y = Y

Y - 0.6Y = 185

0.4Y = 185

Y = 185 / 0.4 = 462.5  

  • Consumption C = 45 + 0.6Y + 0.05W

Putting Y value : C = 45 + 0.6 (462.5) + 0.05 (800) → C = 45 + 277.5 + 40

C = 362.5

  • Income Y is either consumed (C) or saved (S). So, Y = C + S

Hence , S = Y - C → 462.5 - 362.5 = 100

Alternatively : As  C + I = C + S

Hence, I = S

Equilibrium Savings = Given Investment = 100

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Dealer markets are characterized by: no time-consuming search for a fair deal. a guarantee of order fulfillment because the deal
MAVERICK [17]

Answer:

all of the above characterize dealer markets.

  • no time-consuming search for a fair deal.
  • a guarantee of order fulfillment because the dealer holds an inventory of securities.
  • improved market efficiency because dealers provide continuous bid and ask prices for securities.

Explanation:

A dealer market is a market where financial dealers post their trading prices (the buying and selling price of stocks, bonds, foreign currency, etc.). The largest dealer market in the US is Nasdaq where stocks are traded electronically. The main difference between a dealer market and a regular auction market like the NYSE is that no bidding takes place since operations are done in a split second.  

3 0
3 years ago
Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicat
kenny6666 [7]

Answer:

c. Work in Process--Department 2 375,000 Work in Process--Department 1 375,000

Explanation:

The journal entry is shown below:

Work in Process - Department 2 $375,000  ($100,000 + $125,000 + $150,000)

     To Work in Proces - Department 1 $375,000

(Being the flow of cost from Dept 1 to Dept 2 is recorded)

Here the work in process for dept 2 is debited as it increased the assets and credited the work in process for dept 2 as it decreased the assets

4 0
3 years ago
At a given level of income, the average black american household has _______ as much wealth as does the average white american h
Lunna [17]

The average Black American household when compared to the average income of a White American household has less than 15% of it.

<h3>How bad is the wealth disparity in America?</h3>

On average, it is said that White American families earn about $142,500 while the average Black family earns $24,100.

This means that the Black family has less than 15% of the income that White American families pull in every year.

Find out more on America's wealth disparity at brainly.com/question/26734565.

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6 0
2 years ago
which is an implied power of the federal government? raising taxesregulating tradedrafting soldiersdeclaring war
mars1129 [50]

Drafting soldiers is an implied power of the federal government.

According to Article I, Congress has the authority to make provisions for the general welfare and common defense of the United States. However, the establishment of a forced draft for enlistment in the military is an implicit power that has been exercised at various points in American history, from the Civil War until 1973.

Another well-known example of implied powers is the ability to form an army through a draft. For instance, the Constitution does not expressly permit the use of a draft prior to America's participation in World War II.

The ability to declare war, provide for and maintain a Navy, create and fund Armies, and equip, direct, and summon a militia all fall under the purview of Congress.

To learn more about Constitution refer to:

brainly.com/question/19411179

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7 0
2 years ago
A) You have just moved into a new apartment and are trying to arrange your bedroom. You would like to move your dresser of weigh
notsponge [240]

Answer:

A. W = 0joule

B.W = d * w * cos (90 -ø)

Explanation:

work done is force multiplied by distance since the distance covered by the dresser is zero so automatically work done in moving the dresser is 0 (zero)

B. The component of weight of box along the inclined plane = w * cos ( 90 - ø )

Where ø is the angle of inclination to the horizontal

W = weight of body due to gravity.

Since the distance traveled by box due to gravity = d

So therefore:

W = d * w * cos (90 -ø)

W = work done

N.b

See attached sketch for comprehension

4 0
3 years ago
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