# Homework 1 - Maximum number of choices allowed is{0...

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Chapter 6 / Exercise 75
Intermediate Algebra: Connecting Concepts through Applications
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Chapter 6 / Exercise 75
Intermediate Algebra: Connecting Concepts through Applications
Clark Expert Verified
answer, you will simply enter the number; so if your answer is 2, enter 2 with no decimals. Do not enter any extra spaces, do not enter commas or \$ or % symbols.Suppose the consumption function is: C = a1Yd+ a2WRE/S + a3CC Where all the a’s (the sensitivity parameters) are greater than zero. Initial conditions: Let a1= 0.60, a2= 0.04, a3= .5, WRE/S = 18,000: CC = 90 Solve for C in terms of Yd.Select the correct equation below.
Table for Individual Question Feedback2. Use the equation you found in #1 and let Yd= 2000. C is equal to .Table for Individual Question FeedbackPoints Earned: 3.0/3.0
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 Yd. Select the correct equation below.
Table for Individual Question Feedback4. Now suppose disposable income (Yd) falls due to a tax increase (Uncle Sam is trying to balancethe budget) to 1800. Solve for the level of consumption using the equation you found in #3. Consumption (C) is equal to .Table for Individual Question FeedbackPoints Earned: 3.0/3.0
5. 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 .Table for Individual Question FeedbackPoints Earned: 3.0/3.0
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