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user100 [1]
3 years ago
12

assume that autonomous consumption is $1610 billion and disposable income is $11,200 billion. Using the consumption function, ca

lculate consumption expenditure
Business
1 answer:
Viefleur [7K]3 years ago
6 0

Answer:  $9,226

Explanation;

The consumption function is;

Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)

Marginal Propensity to Consume;

=Increase in consumption expenditure/  Increase in Disposable income

= 680/1,000

= 0.68

Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)

= 1,610 + ( 0.68 * 11,200)

= $9,226

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Benito's family is thinking of relocating from Los Angeles to Oakland to save money. They set up a budget comparing the cost of
padilas [110]

Answer:

Total monthly saving = $1,315

Explanation:

Given:

                         Oakland     Los Angeles  

Cost Housing       $565        $1200

Food                     $545        $655

Health Care          $245        $495

Taxes                    $450         $625

Other Necessities $350        $495

Find:

Total monthly saving

Computation:

Saving in house = $1200 - $565 = $635

Saving in food = $655 - $545 = $110

Saving in health care = $495 - $245 = $250

Saving in taxes = $625 - $450 = $175

Saving in necessities = $495 - $350 = $145

Total monthly saving = $635+$110+$250+$175+$145

Total monthly saving = $1,315

7 0
3 years ago
Read 2 more answers
You will receive annual payments of $800 at the end of each year for 12 years. The first payment will be received in Year 3. Wha
Aneli [31]

Answer:

Option (d) $5,549.96

Explanation:

Data provided in the question:

Annual payments = $800

Time, n = 12 years

Discount rate, r = 7% = 0.07

Now,

PV2 = Annual payments × ((1 - (1 + r)⁻ⁿ)) ÷ r ) × (1 + r)

=  $800 × ( (1 - ( 1 + 0.07)¹²)) ÷ 0.07) × (1 + 0.07)

PV2 = $6,354.15

Therefore,

Present value today = PV2 ÷ (1 + r )²

= $6,354.15 ÷ (1 + .07)²

or

= $5,549.96

Hence,

Option (d) $5,549.96

3 0
3 years ago
Suppose your employer offers you a choice between a $ 5 comma 000 bonus and 100 shares of the​ company's stock. Whichever one yo
blagie [28]

Answer:

a) I will pick the shares and sell them ,as this will yield a better return 6,338 to 5,000

b) I will consider:

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  • and the rate of return in the market
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Explanation:

100 shares x 63.38 = 6,338 cash bonus for shares

If the stocks should be retained for at least a year.

there are two components that will need consideration:

the expectation on the stock price

and the rate of return in the market

if we assume the stock will keep the same value then it will yield:

6,338 / 5,000 - 1 = 0.2676 = 26.76%

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3 years ago
The present value of an annuity falls when interest rates rise
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That is true, if you raise the rate then the present value falls.Of course, the present value will fall assuming the existence of positive cash flows. This annuity present value is divided into four pieces which are: the present value (PV), the periodic cash flow (C), the discount rate (r), and the number of payments, or the life of the annuity, (T). 
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4 years ago
Globalization as an apparent universal civilization revolves around the emergence and spread of common systems, including but no
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Globalization is an apparent universal civilization that revolves around the emergence and spread of common systems that include, but are not limited to, political relations, economic transactions, technology creation/transfer, and Cultural Influence.

<h3>What is Globalization?</h3>

Globalization refers to the process of spread of financial products, goods, technology, information, and jobs across national borders and cultures.

It is the growing interdependence of the world's economies, cultures, and populations that is brought by cross-border trade in goods and services.

It has increased the interconnection of local and nationalistic economies across the world.

Learn more about the globalization here:-

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2 years ago
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