17 to 19 please Signup stack overflow x M1 All Mail ckpala richard x Dvl Verizon

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17 to 19 please

Signup stack overflow x M1 All Mail ckpala richard x Dvl Verizon unable to find x D submission Details tor R x AA Exam 2 https://wwiw.chegg.com C O www.macmillanhighered.com/launchpad/krug MULTIPART LESSONS/59d9b8f 23ce4c228 /db82/d9a80fa/8?mode startQuiz&renderln; fine&ordinal; -1 Done Exam 2 Signup Stack overtlow x M All Mail okpalanchard x M vereon I unable to tind x Sutmission Details tor R Exam 2 C www.macmillanhighered.com /launchpad/iterm/PX MULTIPART LESSONS/59d9b8f523ce4c2287db827d9a80fa78?mode artQuizBarenderiln fino&ordinal; -1 Done Exam 2 3,500 3,500 ,900 600 4,000 4.000 3,300 600 Table: Aggregate Spending) According to the Table: Aggregate Spending, suppose the economy has no government spending and no foreign trade, With no taxes and transfers, real GDP is equal to disposable income (Yix). he data in the table show consumption spending (C) and planned investment (IPlanneri). he income-expenditure equilibrium real GDP is found at If planned Investment fe to $300, the new income expenditure equilibrium real GDP would fall to $3500: $2500 $3500; $2000 $3000; $1500 $4000: $2500 17. In an open economy, savings is equal to: the budget balance plus net capital outflow. investment spending plus consumption. national savings plus new capital inflow. capital inflow minus capital outflow. 18. The marginal propensity to consume is the increase in consumer spending when increase(s) by $1 investment spending disposable income savings 19. The financial system performs certain tasks in order to make the financial market more efficient. Which one is NOT one of these tasks? reducing risk reducing men costs reducing transaction costs

Explanation / Answer

investment spending plus consumption.:

A key decision in the circular flow model we studied is how much households spend on consumption.  Consumption and income tend to be highly correlated.

A.     Income and Consumption

Disposable Income - Income actually available for spending is personal income less net taxes.  The difference between disposable income and consumption is savings.

*In the 90s, we have spent about 92 percent of our disposable income, and saved about 8 percent.  More recently consumers have in some months increased consumption faster than income resulting in a negative savings rate (higher debt accumulations).

The Consumption Function - The relationship between the level of income in an economy and the amount households plan to spend on consumption, other things constant.

Households look at their level of disposable income and decide how much to spend. So spending depends on disposable income.

taxes

reducing transaction costs

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