Calculate marginal propensity to consume after the change

Assignment Help Econometrics
Reference no: EM13243869

Calculate the marginal propensity to consume after the changein the rate of savings for the following scenerio:
20 years ago the average savings rate was 20 percent ofdisposable income. It is predicted that this would dropto 5 percent in less than five years.

Reference no: EM13243869

Questions Cloud

What would be the effect of a 2 percent increase in income : the price of elasticity of demand for tvs in canada is 1.2 and the income elasticity of demand for automobiles is 3. What would the effect of a 3 percent decline in tv prices on thequantity of tvs demanded.
What minimum power must be supplied to the generator : The moving non-conducting belt of a Van de Graaff generator carries 10 µC of charge up to the metal sphere each second, What minimum power must be supplied to the generator to sustain its operation
Explain the effectiveness of the salt bridge : Small air bubbles in the salt bridge may not be a problem. How can the presence of air bubbles in the salt bridge alter the effectiveness of this salt bridge
Explain why is it important to clean the surface of the zinc : Why is it important to clean the surface of the zinc and copper electrodes with 1 M HNO3 immeadiately before using them in this experiment.
Calculate marginal propensity to consume after the change : Calculate the marginal propensity to consume after the change in the rate of savings for the following scenerio: 20 years ago the average savings rate was 20 percent ofdisposable income
Determine how much mass m of ice should be added : The temperature of 2.10 kg of water is 34 °C. To cool the water, ice at 0 °C is added to it. The desired final temperature of the water is 11 °C, determine how much mass m of ice should be added.
Explain how many grams of water are formed : When 20.0 g C2H6 and 60.0 g O2 react to form CO2 and H2O, how many grams of water are formed
When you are considering the value of a resource : As additional units are produced, the marginal revenue product falls for all firms because marginal product decreases. For firms operating in industries that are not perfectly competitive, marginal revenue product also falls because
What is the anticipated mass for balancing the frame-balance : A current of 18 Ampere runs through the Parallel Wire Apparatus. What is the anticipated mass (in milligrams) for balancing the frame-balance

Reviews

Write a Review

Econometrics Questions & Answers

  What is the breakeven point at a sale price

The company you work for has a high speed 5-axis milling machine which was purchased 5 years ago for $200,000 and has a 10 year life. This machine is currently idle and can be used to make a product designed by a research institute

  What are the four mutually exclusive alternatives

First Cost: $500 Uniform Annual Benefit: $122 Salvage Value: $0 (a) Construct a choice table for interest rates from 0% to 100% (b) If the minimum attractive rate of return is 8% which alternative should be selected

  By what percentage quantity of tires demanded to change

the short-run price elasticity of demand for tires is 0.9. If an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quantity of tires dem..

  Find the return on equity and find the return on assets

Consider a bank with the following income statement: It has $100 in loans with an interest rate of 5 percent; $50 in security holdings, paying 10 percent; reserves of $10; $100 in savings accounts that earn an interest rate of 2.5 percent.

  By how much is your bank now able to expand the loans

2-you find $1000 worth of old coins while you are mountain climbing in Colorado.You promptly deposit the coins in your Checking account. if the reserve requirement is 10%, how much money did you ultimately create

  What are the chance to lose cash or have it stolen

Using a spreadsheet program or a calculator, solve Tracy's problem of how often to go to the ATM when the norminal interest rate on her bank account is 10%, she spends $30 each day, it costs her $0.50 each time she uses the ATM.

  Are functions homogeneous in income and prices

Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u(x; y) = lnx + 2lny (MUx = 1=x;MUy = 2=y). Repeat part (b) for the case in which px..

  Calculate the uniform annual cost

An alternative has a discounted project cost of $2,195,000 with no salvage value. The estimate was in constant dollars and the discounting used mid-year factors. While the period of analysis is 5 years, the alternative only provides benefits for t..

  What interpretation would you give to the exponent for r

an estimate of the demand function for household furniture produced the folloing results: F= 0.0036Y1.08RR0.16p-0.48 r(2)=0.996 where F= furniture expenditures per household Y = disposible personal income per household R = value of private residen..

  By how much would value of the financial securities decline

Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing financial securities at a geometric rate, specifically from $2 to $4 to $8 to $16 to $32 to $64 over a six-year time pe..

  Compute gdp-ndp and ni

Using the following national income accounting data, compute (a) GDP, (b) NDP, (c) NI. All figures are in billions. Compensation of employees U.S. exports of goods and services Consumption of fixed capital (depreciation) Government purchases Taxes on..

  How the each rebound per game increases games won

estimated that an increase by 1 in the number of games won raises team revenues by $250,000. You have determined that each rebound per game increases games won by 0.4 and each point per game raises games won by 0.1. A basketball player.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd