Question

In a closed economy, without the government, the consumption expenditure equals $5,000 and the investment expenditure...

In a closed economy, without the government, the consumption expenditure equals $5,000 and the investment expenditure equals $2,000. If the population of the economy is 200, the per capita national income is:

  • A. $10.
  • B. $17.
  • C. $35.
  • D. $50.

In a closed economy without the government, income equals:

  • A. aggregate consumption.
  • B. aggregate savings.
  • C. aggregate savings plus aggregate investment.
  • D. aggregate savings plus aggregate consumption.

The savings rate designates:

  • A. the fraction of income that households save.
  • B. the difference between household consumption and savings.
  • C. the rate of return households earn on their savings.
  • D. the difference between government revenue and government expenditure.

The rate of return that households expect on their savings is determined by:

  • A. tax rates.
  • B. interest rates.
  • C. exchange rates.
  • D. government expenditure.
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
n a simple closed economy where there is no government and investment, the consumption function of...
n a simple closed economy where there is no government and investment, the consumption function of households is given by C(Y)=60+0.6Y. The potential output in this economy at 450. a. What is the consumption expenditure when income is equal to zero? b.  What is the break-even point Y? c. By how much will equilibrium income change due to the addition of investment?   d. Suppose, now our simple closed economy added an intended investment I=100, the consumption function of households is still...
In a simple closed economy where there is no government and investment, the consumption function of...
In a simple closed economy where there is no government and investment, the consumption function of households is given by C(Y)=60+0.6Y. The potential output in this economy at 450. What is the expenditure multiplier in this economy? Select one: a. 0.40 b. 1.66 c. 2.5 d. 0.60 e. None of the other four choices
Income    (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000...
Income    (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000 $11,000 $2,500 $5,000 $12,500   12,000 14,000 2,500 5,000 12,500 20,000 20,000 2,500 5,000 12,500 30,000 27,500 2,500 5,000 12,500 50,000 42,500 2,500 5,000 12,500 100,000 80,000 2,500 5,000 12,500 1.Calculate savings, autonomous consumption, MPC, MPS, break even income, and the equilibrium level of income (Y = AE = C + I + G + NX) in the above given information. 2. Draw a graph...
73. Using your knowledge of economics, answer the following: 73a. The most comprehensive (inclusive of goods)...
73. Using your knowledge of economics, answer the following: 73a. The most comprehensive (inclusive of goods) measure of the rate at which prices are changing is: a. the CPI b. the balance-of-payments index. c. the GDP Chain Price Index. d. the index of wage. 73b. An index of prices of all domestically produced goods in the economy is the a. Consumer Price Index. b. GDP Chain Price Index. c. Producer Price Index. d. Wholesale Price Index. 73c. In the income-expenditure...
Income    (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000...
Income    (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000 $11,000 $2,500 $5,000 $12,500   12,000 14,000 2,500 5,000 12,500 20,000 20,000 2,500 5,000 12,500 30,000 27,500 2,500 5,000 12,500 50,000 42,500 2,500 5,000 12,500 100,000 80,000 2,500 5,000 12,500 Calculate savings, MPC, MPS, break even income, and the equilibrium level of income (Y = AE = C + I + G +NX) in the above given information. Draw a graph showing disposable income (Yd)...
In an economy where GDP equals 100, consumption equals 67, investment equals 14, and government purchases...
In an economy where GDP equals 100, consumption equals 67, investment equals 14, and government purchases equal 21,      a)    exports must exceed imports by 2.      b)    taxes must exceed government purchases by 2.      c)    imports must exceed exports by 2.      d)    net exports must equal 2.      e)    none of the above.
The MPC for a closed economy is 0.75. Autonomous consumption is $500, investment is $300, and...
The MPC for a closed economy is 0.75. Autonomous consumption is $500, investment is $300, and government spending is $400. a) What is the equilibrium level of real GDP? b) If business increases planned investment expenditure by 300 to 400, what is the new equilibrium real GDP? c) What is the slope of the AE function in this economy and the value of the multiplier?
NATIONAL INCOME The 2019 Zambian economy shows that the autonomous consumption expenditure is K185 million and...
NATIONAL INCOME The 2019 Zambian economy shows that the autonomous consumption expenditure is K185 million and the marginal propensity to save is 0.25. Investment function (I)=150+0.125y-10i, government expenditure is K100 million, and net taxes are K80 million. The report shows that investment, government expenditure and taxes are constant. The Central Bank indicated that the money markets are influenced by the money demand function M^d=300+Y-10i and money supply function M^s=350+90i. The statistics show that Zambian economy was not trading with the...
Suppose that in a closed economy with a state sector the following relations apply: Consumption function:...
Suppose that in a closed economy with a state sector the following relations apply: Consumption function: ? = 125 + 0.75?? where ?? = ? - ? Desirable investment: ? = 30 Government spending: ? = 50 Taxes: ? = 15 A. Find the equilibrium income, the available equilibrium income and the equilibrium consumption. B. Find and interpret investment and tax multipliers. C. Calculate the savings function under the assumption that the economy is in equilibrium as well as the...
In a closed economy, given the following: The consumption function C = 0.8(1 – 0.25) Y...
In a closed economy, given the following: The consumption function C = 0.8(1 – 0.25) Y + 12           The average tax rate t = 25% The level of private investment I = 26 The level of government spending G = 14 Where Y is the national income. Calculate the equilibrium level of income and output in the economy. Calculate the expenditure multiplier and show the effect of an increase in government spending and an increase in private investment.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT