Macroeconomics Answers

7. à ¢ € œChanges in disposable income lead to movements along the consumption function; changes in wealth or other factors lead to a shift of the consumption function.à ¢ €  Explain this statement with an illustration of each case.

6. ⠀ œAlong the consumption function, income changes more than consumption.⠀  What does this imply for the MPC and MPS?

5. Estimate your income, consumption, and saving for last year. If you dissaved (consumed more than your income), how did you fi nance your dissaving? Estimate
the composition of your consumption in terms of each of the major categories listed in Table 21-1.

4. I consume all my income at every level of income. Draw my consumption and saving functions. What are my MPC and MPS?

3. Exactly how were the MPC and MPS in Table 21-4 computed? Illustrate by calculating MPC and MPS between
points A and B. Explain why it must always be true that MPC+MPS = 1

1. Summarize the budget patterns for food, clothing, luxuries and saving.

suppose the quantity support for corn is:Qs=150 +14p and the deamand function for this corn is :P=16.875-0.0625Q with ten number of buyers and sellers ,were price is measured in dollars per bushels and quantities are in million of bushels per year.then
A,find the market equilibrium price and equilibrium quantity of corn
B,find the price elasticity of demand and supply at equilibrium price and quantity and interpret the result

an investor purchased a bond 63 days ago for $980 . He received $17 in interest and sold the bond for $987. What is the holding-period return on his investment?