ECONHW1 .docx - Part 1 20 questions worth 3 points each for a total of 60 points FOR FILL-IN-THE-BLANK questions If your answer is in decimal form round

# ECONHW1 .docx - Part 1 20 questions worth 3 points each for...

• Notes
• 18
• 100% (21) 21 out of 21 people found this document helpful

This preview shows page 1 - 5 out of 18 pages. Suppose that the stock market rallies so that WRE/S increases to 22,000. Additionally, consumer confidence (CC) rises to 120. Re-solve for C in terms of Y d . Select the correct equation. C = 930 + .60 Y d Correct! C = 940 + .65 Y d None of these are correct C = 830 + .65 Y d C = 980 + .64 Y d Question 4 3 / 3 pts 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 question #3. Consumption (C) is equal to: Correct! Correct Answers 2110 Question 5 3 / 3 pts 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: Correct! Correct Answers 2240 Question 6 3 / 3 pts 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. Correct! Correct Answers 2.680 2.68 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. Question 7 3 / 3 pts 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, 1995 6442.9 7190.9 January 1, 2018 12061.0 12940.5 The percent change in consumption between 1/1/95 and 1/1/18 is: _______%.  #### You've reached the end of your free preview.

Want to read all 18 pages?

• • •  