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1/20/2019Homework 01: Econ 104 WC Sec 1 Spring 20191/19Homework 01DueJan 20 at 11:59pmPoints100Questions40Availableuntil Jan 21 at 4amTime LimitNoneInstruc±onsA±empt HistoryAttemptTimeScoreLATESTAttempt 1 72 minutes87 out of 100Correct answers will be available on Jan 21 at 11:59pm.Score for this quiz: 87out of 100Submitted Jan 20 at 9:05pmThis attempt took 72 minutes.Homework 01Lessons 01 and 02100 pointsThis homework is composed of multiple choice, fill-in-the-blank and true/false questions. Select or enter yourresponses for each question. There is no time limit.It will be available for review starting the day after the assignment is due.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 to 2 decimal places. For example, if your answer is .412, enter it intothe fill-in-the-blank as .41, or if your answer is 1.415, enter it into the fill-in-the-blank as 1.42. If there are no decimals in your answer, you will simplyenter the number; so if your answer is 2, enter 2 with no decimals. Do notenter any extra spaces, do not enter commas or $ or % symbols.
1/20/2019Homework 01: Econ 104 WC Sec 1 Spring 20192/193 / 3 ptsQuestion 1Suppose the consumption function is: C = aY+ aWRE/S + aCC Whereall the a’s (the sensitivity parameters) are greater than zero. Initial conditions:Let a= 0.65, a= 0.04, a= 0.5, WRE/S = 18,000: CC = 70 Solve for C interms of Y.Select the correct equation.1d23123dC = 765 + .60 YdC = 70 + .65 YdC = 755 + .65 YdC = 685 + .64 YdNone of these are correct 3 / 3 ptsQuestion 2Use the equation you found in #1 and let Y= 2000. C is equal to:3 / 3 ptsQuestion 3Suppose that the stock market rallies so that WRE/S increases to 22,000.
1/20/2019Homework 01: Econ 104 WC Sec 1 Spring 20193/19C = 930 + .60 YdC = 940 + .65 YdC = 830 + .65 YdC = 980 + .64 Yd3 / 3 ptsQuestion 4Now suppose disposable income (Y) falls due to a tax increase (Uncle Samis trying to balance the budget) to 1800. Solve for the level of consumptionusing the equation you found in question #3. Consumption (C) is equal to:3 / 3 ptsQuestion 5Now we will calculate the level of consumption that would have occurred ifUncle Sam did not raise taxes. In other words, use the equation you found inquestion 3, but keep Yat its original value of 2000. Consumption (C) is