Question 2 The IS curve would unambiguously shift up if there were an increase in both government purchases and corporate taxes. an increase in both government purchases and the expected future marginal product of capital. an increase in the expected future marginal product of capital and a decrease in expected future output. a decrease in both corporate taxes and the expected future marginal product of capital.
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- Assume that in 2016, the followng prevals n the Republic of Nurd Goverment spending (0) 50 Not taxos (T)- 50 Planned investment - S30 Assume that househoids in Nurd censume 75 percent of heir income, they save 25 percent of their income. Thun, the consumption function and saving function of Nurd re C-075Y, and S=025Y. where disposabile income YY-T Determine the equilitrium level of income Equilibrium income =$(Enter your reaponse as an integer.)4) Distinguish between the short-run and long-run factors that affect residential investment.u.edu.tr/mod/quiz/attempt.php?attempt=3214468&cmid%3D203021 Refer to the information provided in Figure 23.3 below to answer the question(s) that follow. amadı inden 270 miş 200 işaretle 130 60 450 100 200 300 Aggregate income (Y) Figure 23.3 Refer to Figure 23.3. The equation for the aggregate saving is Lütfen birini secin. O A S= -130 +0,4Y O B. S= 140 +05Y OC S= -80 +0.4Y ODS= -60 +03Y CES 200 +06Y Aggregate consumption (C)
- Please no written by hand solutions 14)An economy has full-employment output of 5000. Government purchases are 1000Desired consumption and desired investment are given by C ^ d = 3000 - 2000r + 0.1Y I ^ d = 1000 - 4000r where Y is output and r is the expected real interest rate(a) Find the real interest rate that clears the goods market. Assume that output equals full- employment output. (b) Calculate the amount of saving, investment, and consumption in equilibrium. (c) If a shock to wealth causes desired consumption to decline by 200 (so that the new equation for desired consumption is C ^ d = 2800 - 2000r + 0.1Y ). find the equilibrium real interest rate, saving, investment, and consumption.500 1,000 Aggregate output, Y (billions of dollars) Figure 8.1 Refer to Figure 8.1. An increase in the MPC Select one: Oa shifts the saving function downward. Ob.makes the caving function fatte Oashifts the consumption function upard. .2.makes the consumption function fatter) billions of dollars)Help Sav 0 Homework Saved The investment demand curve for a country is shown on the graph below. Suppose that a research institute in this country has just developed a new medical scanner that can detect cancer in significantly earlier stages than the current technology. The research institute has licensed the scanner technology to several medical device manufacturers in the country Use the graph to show what you would expect to happen to investment demand in this country Instructions: Use the tool provided 'ID1 and draw a new investment demand curve that would reflect this technological change. Investment Demand 14 Tools 12 ID 10 4 2 KPrev 16 of 16 earch ed rate of return and real interest rate (%)
- Suppose that interest rates fall. This will cause: the present values of investment projects to fall; this will cause investment to rise a. Ob. the present values of investment projects to fall; this will cause investment to fall Oc the present values of investment projects to rise; this will cause investment to rise the present values of investment projects to rise; this will cause investment to fall Od.Using the table1 below, calculate the marginal propensity (MPS) to save. Income Consumption (Dollars) (Dollars) 50,000 48,000 66,000 62,000 O a. 0.363 O b. 0.125 OC. 0.675 O d. 1.50hich theory of consumption best explains the consumption behavior of consumers of our economy? Question No: 02 [Marks: 10] If the State Bank started printing large quantities of Pakistani Rupees (Rs), what would happen to the number of Pakistani Rupees a dollar could buy? Why? Question No: 03 [Marks: 10] Deseribe the difference batuuean foreian diract investmet and foraion nortfolie invastment Who is mora likelu to
- Suppose a given hypothetical economy has the following values. GDP-520 Billion, Consumption =$13 Billion; Govermment Purchase-$4 Billion; and Budget Surplus = $1 Billion How much is the public saving? OA S5 Bilion OB $4 Blion OC.52 Billion OD-$1 Billion OE S1 Billion OF $3 BillionCo If the consumption function is of the form [C= 80 + 0.4 Y, the MPS equals Lütfen birini seçin. O A. 80 O B. -0.4. O C. 0.6. O D.04 O E.-0.6. Refer to the information provided in Table 22.4 below to answer the quesi5) Mrs. Gizem has a salary of 10000 TL per month. Assuming that her autonomous (zero-income level) consumption is 600 TL and her MPC is 0.72, find how much she spends in one month and how much she saves? b) If Mrs. Gizem receives a salary rise of 2000 which increases her monthly salary to 12 000 per month; how much increase we may expect in her consumption and her saving?