Explain the determinants of consumption

Assignment Help Finance Basics
Reference no: EM132199547

Question -

1. Discuss the plausibility of the importance of (very) forward-looking behavior for current decisions. In your discussion, refer specifically to the know ability of the future and the capacity of agents (consumers, workers and capitalists) to discount the future.

2. Explain the determinants of consumption (current after-tax income, wealth, debt, and present value of expected income). Why do they matter?

3. Explain the determinants of investment (sales/income, interest rate, profit rate (profit per unit of capital), and present value of expected profits). Why are they important?

Reference no: EM132199547

Questions Cloud

Businesses improve their syrategic operations : You work for a consulting firm whose primary objectove is to help businesses improve their syrategic operations
Describe the two passive management strategies : Describe the two passive management strategies: buy-and-hold and indexing. Include a discussion of the advantages and disadvantages of each strategy.
What are the ethical principles and implications : What are the ethical principles and implications raised by legally mandating clients into treatment? What evidence exists regarding the effectiveness.
Find a public company that pays the dividend to shareholders : Find a public company that pays the dividend to shareholders, what is its business and recent history?
Explain the determinants of consumption : Explain the determinants of consumption (current after-tax income, wealth, debt, and present value of expected income). Why do they matter
How are conference presentations professionally relevant : How are conference presentations professionally relevant? What elements of the proposal process were most difficult for you, and why?
Find the graphs of f and g : Use the graphs of f and g to find the
Prepare a sections of a strategic plan for the corporation : To feel confident that all of the employees in your strategic planning team understand all that you have taught them.
How much will widget gain or lose from this swap deal : Widget Co. has just issued $1 million in five-year bonds, If LIBOR only rises 0.5% per year, how much will Widget gain or lose from this swap deal

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the break even volume of work for a company

Determine the break-even volume of work for a company with a fixed overhead of $63,000, a contribution margin ratio of 11.0%, and a required level of profit of $60,000.

  How part of this disagreement might be related to taxes

However, the institutions would like to see the firm raise the capital through debt. Explain how part of this disagreement might be related to taxes.

  Unfortunately in recent times we have seen a number of

unfortunately in recent times we have seen a number of examples of unethical behavior in organizations often tied to

  The campbell company is considering adding a robotic paint

the campbell company is considering adding a robotic paint sprayer to its production line. the sprayers base price

  Calculate his investment rate of return and his capital gain

A man invested in 500 shares of a local business stock selling for $15.75 a share. A while later he sold half of his shares at $17.25.

  Main types of trading systems

What are the main types of trading systems? What is a forward, futures, and options market for foreign currencies?

  Calculate flamingo’s cash conversion cycle

The Flamingo Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash flow cycle. Last year, Flamingo's sales (all on credit) were $180,000, and its cost of goods sold were 85 perce..

  Article advice for effective analytical reasoning

Submit an annotation of the article Advice for Effective Analytical Reasoning

  Should your company purchase the dump truck

The dump truck could be billed out at $55.00 per hour and costs $13.00 per hour to operate. The operator costs $22.00 per hour. Using 1,000 billable hours per year determine the net present value for the purchase of the dump truck using a MARR of 18%..

  What is the profit or loss on the stock portfolio

You are the manager of a stock portfolio worth $8,750,500 and a beta of 1.05. During the next 5 months, you expect a correction in the market.

  What was annual rate of return on the sculpture

Calculating Rates of Return. Although appealing to more refined tastes, art as a collectible has not always performed so profitably.

  Why should countries engage in international trade

Why should countries engage in international trade rather than remaining self-sufficient and avoiding the unfair competition of low-paid foreign workers?

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