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insens350 [35]
4 years ago
7

Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.84. Suppose that in Year 1, disposable in

come in the economy was $412 billion and consumption was $368 billion. Suppose further that in Year 2, disposable income is $540 billion. Calculate the level of saving in Year 2. Show your work.
Business
1 answer:
Ede4ka [16]4 years ago
8 0

Answer:

$64,48 billion

Explanation:

marginal propensity ( MPC ) = 0.84  i.e ratio of disposable income to consumption is $1 to 84 cent

YEAR 1 disposable income = $412 billion

year 1 consumption =  $368 billion

year 2 disposable income = $540 billion

calculate the level of saving in year 2

from given data

consumption = Co + 0.84 * 412

368 = Co + 346.08

therefore Co = 21.92

therefore for year 2

Consumption = Co + 0.84 * 540

                     = 21.92 + 453.6 = $475.52

hence savings level = disposable - consumption = 540 - 475.52 = $64,48 billion

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tia_tia [17]

Answer:

Mr Curtis can deduct his total property taxes of $ 7,810.00  as well as the Indiana state income tax of $8,120.00 ,since this exceeds the Indiana state sales tax on consumer goods and services of $2,890.00 paid by Mr Curtis during the year.

Finally,the remaining are not deductible

Explanation:

In other words the following taxes are not deductible:

1.Federal income tax $72,250.00

2.Federal gift tax $361

3.The Federal payroll tax for housekeeper $1,301

4.Indiana sales tax on consumer goods and services$2,890

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lord [1]
The answer is D. Payday Loans

Both credit cards and payday loans have a high interest rates, but payday loans seems a little bit higher

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6 0
4 years ago
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kiruha [24]

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sesenic [268]

Answer: rational decision-making model

Explanation:

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liraira [26]

Answer:

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