Economics

 

Indicate the answer choice that best completes the statement or answers the question.
1. (4 Points) In a simple, closed economy (no government or foreign sector), disposable income decreases
from $6,000 to $4,000. If consumption decreases from $4,500 to $3,000, the multiplier is:
a) 0.25
b) 4
c) 1.125
d) 4
e) -1.125
2. (4 Points) Suppose that the consumption function is C = $500 + 0.8YD, where YD is disposable
income. If disposable income is $1,000, savings is:
a) $500
b) $1,300
c) $300
d) $300
e) $1,500
ECON-1020H Assignment 2 1 / 10
ECON-1020H Assignment 2 February 28, 2022
3. (4 Points) Economists use as a model to explain how savers and borrowers come together to
determine the equilibrium rate of interest
a) the money market
b) the market for loanable funds
c) aggregate demand and aggregate supply
d) multiplier
e) central bank
4. (4 Points) The marginal propensity to save is the increase in household savings when increase(s)
by $1
a) investment spending
b) taxes
c) consumption
d) disposable income
e) saving
5. (4 Points) If the marginal propensity to save is 0.5, the multiplier is:
a) 5
b) 2
c) 1
d) 0.5
e) 0.1
ECON-1020H Assignment 2 2 / 10
ECON-1020H Assignment 2 February 28, 2022
6. (4 Points) In an economy with no taxes or imports, if the marginal propensity to consume increases,
the marginal propensity to save will
a) decrease
b) increase by 1
2
c) increase by the same factor as the marginal propensity to consume
d) not change
e) none of the above
7. (4 Points) Consider the simple economy of Behr, whose government does not tax its citizens. The
consumption function of Behr is given by C = 500 + 0.80Y, where Y is income. Autonomous
consumer spending in this economy is:
a) 1000
b) 800
c) 500
d) 300
e) not possible to calculate

Sample Solution

sts said. This normal ascent in joblessness is probably going to press ostensible family livelihoods as pay development endures a shot”. (Rodionova, 2016)

(Measurements, 2016b)

Moreover, on the off chance that Britain leaves the EU it would diminish the quantity of unfamiliar specialists which will make the country less wide for instance in abilities. Assuming individuals choose to leave, this would mean we are losing individuals with various capacities and abilities. This will result into individuals having less extra cash to spend. Be that as it may, an advantage result is, more positions accessible to the British residents assuming outsiders choose to leave. The Housing market has likewise been impacted by the Brexit as abroad property purchasers are purchasing London properties after the stunning choice for the UK leaving the EU. In the UK, it is generally outsiders purchasing properties, so the UK leaving the EU the real estate market has fallen. For instance, Estate specialists in the UK have been overwhelmed with calls from Chinese, Middle Eastern, Italian and Spanish purchasers searching for a deal after the pound tumbled to over 30-year lows.

Crime percentage will increment because of Britain leaving the EU as a result of the circumstance occurring in Syria. The more transients the UK takes, the more defenseless against psychological militant assaults we are and this is one of the principle reasons individuals needed to leave the EU as they needed less possibilities anything occurring. Assuming that the crime percentage builds, this would influence the economy as individuals would need to settle for charges assuming that more individuals are going to jail or on the other hand assuming any assaults happen and so forth “Disdain wrongdoing flooded in England, Wales and Northern Ireland in the last part of July almost a month after the EU mandate vote nevertheless remaining parts at fundamentally more elevated levels than a year prior. The most recent arrangement of figures discreetly delivered by the National Police Chiefs’ Council on Wednesday shows a 49% ascent in episodes to 1,863 somewhat recently in July in contrast with the earlier year. The week after saw a re

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, Welcome to Compliant Papers.