Question

In: Economics

Complete the following table assuming that (a) MPS = 0.2, (b) there is no government and...

Complete the following table assuming that (a) MPS = 0.2, (b) there is no government and all saving is personal saving.(mps=marginal propensity to save)

Hint: mps = S1 - S0 / Y1 - Y0

Level of output and income  

Total Consumption

Total Saving

200

210

____________

225

____________

____________

250

____________

____________

275

____________

____________

300

____________

____________

Suppose a family's annual disposable income is 8,000 of which it saves 3,900.

(a) What is their APC (average propensity to consume)? ____________

(b) If their income rises to 9,500 and they plan to save 4,400 , what are their MPS and ____________ MPC? ____________

Solutions

Expert Solution


Related Solutions

Refer to columns 1 and 6 in the table. Incorporate government into the table by assuming...
Refer to columns 1 and 6 in the table. Incorporate government into the table by assuming that it plans to tax and spend $20 billion at each possible level of GDP. Also assume that the tax is a personal tax and that government spending does not induce a shift in the private aggregate expenditures schedule. What is the change in equilibrium GDP caused by the addition of government? (6) Aggregates, Private Open Economy, Billions (5) Net Exports, Billions (4) Imports,...
3. Complete the following table (in thousands of dollars) assuming a prepayment rate of 165PSA: Original...
3. Complete the following table (in thousands of dollars) assuming a prepayment rate of 165PSA: Original balance: $100,000,000; Pass-through rate: 9.0%; WAM: 360 months; Balance SMM Mortgage Payment Interest Scheduled Principal prepayment total principal cash flow 1 2 WAC: 9.65%
Assuming that the following table represents the investment demand schedules for Country A and Country B....
Assuming that the following table represents the investment demand schedules for Country A and Country B. Interest Rate Country A’s Investment Country B’s Investment 10% $10 $70 8% $50 $75 6% $90 $80 4% $130 $85 2% $170 $90 Plot the respective investment demand curves of Country A and Country B. How is investment related to interest rate? How does this manifest in the graph? How would you characterize the responsiveness of investment spending to the interest rates in Country...
Use the following contingency table to complete​ (a) and​ (b) below. A B C Total 1...
Use the following contingency table to complete​ (a) and​ (b) below. A B C Total 1 15 35 40 90 2 30 35 45 110 Total 45 70 85 200 (a). Compute the expected frequencies for each cell. (b) Compute χ2STAT. Is it significant at α=0.01​?
Use the following contingency table to complete​ (a) and​ (b) below. A B C Total 1...
Use the following contingency table to complete​ (a) and​ (b) below. A B C Total 1 15 30 45 90 2 45 50 55 150 Total 60 80 100 240 a. Compute the expected frequencies for each cell. A B C 1 2 ​(Type integers or​ decimals.) b. Compute χ2STAT. is it significant at α=0.005​? Set up the null and alternative hypotheses to test. Choose the correct answer below. H0​: πA= πB= πC H1​:Not all πj are equal​ (where j=​A,...
B. Using the table below, create the balance sheet of MaineBank assuming the following information (in...
B. Using the table below, create the balance sheet of MaineBank assuming the following information (in millions $$): Reserves = $360, Loans = $1,240, Deposits = $1,800, Debt = $150, Securities = $400, Capital (owner’s equity) = $50. What is the reserve-deposit ratio assuming all reserves are required reserves? What is the leverage ratio? Show your work/calculations. (10 points) MaineBank Balance Sheet Assets Liabilities & Owner’s Equity Reserves                                        Deposits                                     Loans                                             Debt                                            Securities                                      Capital (Owners’ equity)         Total                                              Total                                            Reserve deposit...
Use the following convention table for R-square. From 0.0 to 0.2 Poor From 0.2 to 0.4...
Use the following convention table for R-square. From 0.0 to 0.2 Poor From 0.2 to 0.4 Decent From 0.4 to 0.6 Good From 0.6 to 0.85 Very Good From 0.85 to 1.0 Excellent Upload the ManBody data. Create a scattered plot chart with X representing the Knee size and Y representing the Ankle size (both in centimeters); plot the line and compute the R-square. Answer the questions: I) If a person has knee size equal to 40 cm, according to...
Use the following convention table for R-square. From 0.0 to 0.2 Poor From 0.2 to 0.4...
Use the following convention table for R-square. From 0.0 to 0.2 Poor From 0.2 to 0.4 Decent From 0.4 to 0.6 Good From 0.6 to 0.85 Very Good From 0.85 to 1.0 Excellent Upload the ManBody data. Check which of the following four categories (BODYFAT, WEIGHT, HEIGHT, and KNEE) is the most correlated to AGE category. Make a scattered plot chart with X representing the most correlated category and Y representing the AGE, plot the line and compute the R-square....
Use the following convention table for R-square. From 0.0 to 0.2 Poor From 0.2 to 0.4...
Use the following convention table for R-square. From 0.0 to 0.2 Poor From 0.2 to 0.4 Decent From 0.4 to 0.6 Good From 0.6 to 0.85 Very Good From 0.85 to 1.0 Excellent Upload the ManBody data. Check which of the following four categories (BODYFAT, WEIGHT, HEIGHT, and KNEE) is the most correlated to AGE category. Make a scattered plot chart with X representing the most correlated category and Y representing the AGE, plot the line and compute the R-square....
Complete the following table: Real Output Demanded (in $ billions) by: Price Level Consumers Investors Government...
Complete the following table: Real Output Demanded (in $ billions) by: Price Level Consumers Investors Government Net Exports AD AS 100 180 120 50 50 0 110 150 110 50 40 150 120 120 100 50 30 300 130 90 90 50 20 450 140 60 80 50 10 600 Suppose that the government spending increase by $200 billion at every price level in the preceding problem. What will be the equilibrium GDP? Which macro problem exists now?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT