Homework_1 - Points Awarded 95.00 Points Missed 5.00 Percentage 95.0 1 Part 1 20 questions worth 3 points each for a total of 60 points FOR

# Homework_1 - Points Awarded 95.00 Points Missed 5.00...

This preview shows page 1 - 5 out of 17 pages. Points Earned:3.0/3.0Correct Answer(s):19653.Suppose that the stock market rallies so that WRE/S increases to 22,000. Additionally, consumer confidence (CC) rises to 100. Re-solve for C in terms of Yd. Select the correct equation below.A) C = 720 + .65 YdB) C = 880 + .60 YdC) C = 765 + .64 Yd D) C = 930 + .60 Yd E) None of the above are correctPoints Earned:3.0/3.0Correct Answer(s):D4.Now suppose disposable income (Yd) falls due to a tax increase (Uncle Sam is trying to balance the budget) to 1800. Solve for the level of consumption using the equation you found in #3. Consumption (C) is equal to .Points Earned:3.0/3.0Correct Answer(s):20105.2010 Now we will calculate the level of consumption that would have occurred if Uncle Sam did not raise taxes. In other words, use the equation you found in question 3, but keep Ydat its original value of 2000. Consumption (C) is equal to .Points Earned:3.0/3.0Correct Answer(s):21306.Look at the consumption values you calculated in #2 and #4. The percent change in consumption between those values is %NOTE:There is no graphing component to be collected for this homework. However, you should be comfortable graphing the equations you found in #1 and #3. You should also be able to plot the points you found in #2, #4 and #5.Feedback:NOTE: There is no graphing component to be collected for this homework. However, you should be comfortable graphing the equations you found in #1 and #3. You should also be able to plot the points you found in #2, #4 and #5.21302.29   #### You've reached the end of your free preview.

Want to read all 17 pages?

• • •  