{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Assignment 3

# Assignment 3 - Macroeconomics 314 Assignment 3 Numerical...

This preview shows pages 1–3. Sign up to view the full content.

Macroeconomics 314 Assignment 3 Numerical Problems: 1. a. 1.1(50,000-Cd)-12600+50,000-Cd=0 Cd=44,000 She should consume \$44,000 each year. Sd=income-Cd Sd=50,000-44,000=6,000 She should save \$6,000 this year. b. 1.1(54,000-Cd)-12600+54,000-Cd=0 Cd=48,000 She should consume \$48,000 each year. Sd=54,000-48,000=6,000 She should save \$6,000 this year. The amount she should consume increases by \$4000, while the amount she should save this year remains constant. c. 1.1(50,000-Cd)-12600+54,200-Cd=0 Cd=46000 She should consume \$46,000 each year. Sd=50,000-46,000=4,000 She should save \$4,000 this year. The amount she should consume increases by \$2000, while the amount she should save this year decreases by \$2000. d. 1.1(50,000+1050-Cd)-12600+50,000-Cd=0 Cd=44,550 She should consume \$44,550 each year. Sd=51,050-44,550=6,500 She should save \$6,500 this year. The amount she should consume increases by \$550, while the amount she should save this year increases by \$500. e. 1.1(50,000-Cd)-14,700+50,000-Cd=0 Cd=43,000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
She should consume \$43,000 each year. Sd=50,000-43,000=7,000 She should save \$7,000 this year. The amount she should consume decreases by \$1000, while the amount she should save this year increases by \$1000. f.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 4

Assignment 3 - Macroeconomics 314 Assignment 3 Numerical...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online