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

• Homework Help
• 17
• 100% (32) 32 out of 32 people found this document helpful

This preview shows page 1 - 4 out of 17 pages.

Subscribe to view the full document.

Points Earned: 3.0/3. 0 Correct 3. 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 Y d . Select the correct equation below. Points Earned: 3.0/3. 0 Correct Answer(s): D 4. Now suppose disposable income (Y d ) 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. 0 Correct Answer(s): 2010 5. 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 Y d at its original value of 2000. Consumption (C) is equal to . Points Earned: 3.0/3. 0 Correct Answer(s): 2130 6. 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. 2130 2.29

Subscribe to view the full document.

Points Earned: 3.0/3. 0 Correct Answer(s): 2.29 7. Use the table below for questions 7 & 8. Let’s consider some data on consumption and disposable income from the Federal Reserve Database (measured in billions of dollars) Real Personal Consumption Expenditures Real Disposable Personal Income January 1, 1990 5658.8 6376.6 April 1, 2013 10690.9 11591.4 The percent change in consumption between 1/1/90 and 4/1/13 is %.
You've reached the end of this preview.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern