What happens to consumption if the student is constrained for somereason and cannot borrow today?

Q: The most likely source of an increase in investment is a. Interest rates that are lower b.…

A: "Investment is a kind of good which is not consumed today but used in future in order to generate…

Q: What is the mariginal propensity to consume? Can the mariginal propensity to consume be grreater…

A: The marginal propensity to consume refers to change in consumption following the change in the…

Q: Monica's current income went up from $100.000 to $105,000 and she increased her current

A: Given that, Monica's current income went up from $100,000 to $105,000  Her change in income =…

Q: uppose that the economy is characterized by the following behavioral equations: C = 180 + 0.75YD | =…

A: GDP is the sum of consumption, investment and government spending. Disposable income is equal to GDP…

Q: Explain the term random walk in consumption. Under what conditions will consumption follow such a…

A: Random walk in consumption:- Since consumers usually modify regular consumption whenever they get…

Q: How will demand for a necessity behave with rise in income? (a) Initially the demand rises and then…

A: # Necessities usually includes those itmes which we use in our day to day life. These goods or…

Q: Rosalind won $1000 cash in a lucky draw. Find her marginal propensity to consume if she spent $600…

A: Marginal propensity to consume(MPC) calculates the proportion of extra income which is spent on…

Q: disposable income i

A: Disposable income is the amount of income that a household or individual is left with after paying…

Q: According to Say's Law, the act of producing output generates sufficient income to ensure all output…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: What are the relationships between TP, MP and AP curves?

A: The additional quantity of output produced as a result of using more input is referred to as…

Q: Sally wants to take out her entire savings from her superannuation to spend today. Is this acting in…

A: Behavioural economics refers to the economic measures of the psychology and buying decision of the…

Q: How can shipping delays and shortages of intermediate goods cause a recession?   Why may these…

A: In economics, recession refers to a fall in industrial or trade activity that implies a decline in…

Q: Good X If BC2 is the relevant budget constraint, then which of the following bundle(s) is(are)…

A: A budget constraint shows the amount of goods that consumer can purchase with given set of income

Q: Suppose that the economy is characterized by the following behavioral equations: C= 150 +0.90YD J=…

A: Here, given information is: C=150+0.90YD I=130 G=150 T=90 Using the given information, one can…

Q: Disposable Income (Y) $0 $100 $200 $300 $400 Consumption Spending (C) $100 $180 $260 $340 $420 $500…

A: The marginal propensity to consume is the change in consumption in response to change in the income…

Q: consumption of Grenades increase or decrease

A:

Q: Most consumers prefer to smooth their consumption over time. For the consumer in the situation just…

A: Most consumers prefer to smooth their consumption over time. This statement implies that such…

Q: What are the arguments against austerity measures during a depression or severe recession?

A: Austerity is concerned with the economic related policies, which aims at decreasing the budget…

Q: Calculate saving and aggregate supply when income is 50, from the given table. None of the given…

A: Option (2).

Q: What is ? 1-)Unemployment 2-)Population 3-)Marginal Propensity To Consume

A: Unemployment, Population and Marginal propensity to consume are all macro economic variable, which…

Q: Explain the concept of the 100X Multiplier using the idea of diminishing marginal utility.

A: According to the Law of diminishing marginal utility is refers that The law of marginal utility…

Q: What is consumption smoothing? (i) Consumers lowering their consumption in order to increase their…

A: Consumption smoothening is the process wherein the individual consumes an average amount in all…

Q: According to our analysis of a worker's choice of how much to save for retirement using our model of…

A: Answer:-  (D) An increase in the interest rate.

Q: If a household’s income falls from R12 000 to R10 000, and its consumption falls from R9 500 to R8…

A: An individual earns income when serving his services in the market as labor, worker, or employee. An…

Q: What happens to the Qd of Sugar when price of gur increases?

A: The overall amount payable within a firm to manufacture a given amount of a commodity or provide a…

Q: If the price level increases, what happens to the consumption function? Why?

A: The following problem has been solved as follows:

Q: (f) What is the slope of the 2018 budget constraint? What is the slope of the 2019 budget constraint…

A: The slope of budget constraint: Slope = -PH/PF  For 2018 budget constraint: 150H+50F=1500 Slope2018…

Q: At an income of $100,000, I spent $90,000 on consumer goods.  When my income rose to $200,000, I…

A: Given information, Initial income: $100,000 Final income: $90,000 Initial consumption: $200,000…

Q: Suppose that the economy is characterized by the following behavioral equations: C= 120 + 0.90Y, |=…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: b. How does the increase in the tax rate affect the optimal choice of consumption (in the current…

A: There are 2 possible cases for the given situation where increase in tax rate affect the optimal…

Q: Suppose the government decides to borrow money. The equilibrium interest rate will _____ and the…

A: The following problem has been answered as follows:

Q: When a rational individual elects to save a portion of his/her disposable income then what does that…

A: Disposable income is the amount of money available to an individual or household to spend or save…

Q: Diminishing MRS reflects the notion that people prefer balance in their consumption choices.” True…

A: Substitution effect is the concept in which consumer chooses substitute of the product when it's…

Q: If average income goes from $30,000 to $33,000 and consumption increases from $29,000 to $31,000,…

A: Marginal propensity to consume (MPC) measures the change in spending on consumption for every…

Q: If the supply of petroleum were reduced by petroleum firms due to rising inventories, we can expect…

A: Price is determined by interaction of supply and demand curve.

Q: Suppose that the economy is characterized by the following behavioral equations: C = 180 + 0.80YD 1=…

A: Disposable income refers to the income which is left by a person after paying taxes.

Q: Are the gains achieved or losses incurred by delaying consumption?

A: Delaying consumption is gainful

Q: What happens to the mulitiplier as the MPC falls

A: The relationship between proportionate change in aggregate spending and proportionate change in…

Q: Discuss in detail the effects of the following factors on the position of IS curve. 1- Wealth;…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: What policies will a Neoclassical Economist tell the government to enact in order to foster a…

A: According to Neoclassical economists, economic growth is highly dependent on the supply side. This…

Q: What other factors besides interest rates will cause the investment demand curve to shift?

A: Investment demand has an inverse relationship with the interest rate. There are other factors also…

Q: Multiple choice question and give a short explanation about your answer: According to the Fisher…

A: In the two-period model, the consumers behave rationally and smooth their consumption in the current…

Q: Who gave the theory of consumption?

A: Use of goods or services in order to satisfy the human bond is known as consumption.

Q: In the model of the goods market presented in Chapter 3, which of the following variables is…

A: An exogeneous or external variable is one that exists independently of the economic model. Exogenous…