Autonomous planned investment is 4370. Autonomous consumption is 470. The marginal propensity to consume is 17/20. There are no taxes and no exports or imports. What is the level of private savings in equilibrium? Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the − sign. In case you are interested, Φ is the symbol for the cedi, the official currency of Ghana.
Answers
The level of private savings in equilibrium is approximately Φ4,271.25 or 4271.25 in decimal form.
Given the autonomous planned investment as 4370, autonomous consumption as 470 and marginal propensity to consume as 17/20, we need to find the level of private savings in equilibrium.
So, we know that the formula for the equilibrium level of income is:
Y = AE
where, Y is the equilibrium level of income
AE is the Autonomous Expenditure
Now, we need to find AE by adding APC (Average Propensity to Consume) and APS (Average Propensity to Save).
So,AE = C + I
where,C = APC × YandI = Autonomous Planned InvestmentIn this case, we have no taxes and no exports or imports.
Thus,
AE = C + I = APC × Y + I = (APC = 1 - APS) × Y + Autonomous Planned Investment Equating the equilibrium level of income with AE,
we get:Y = (APC = 1 - APS) × Y + Autonomous Planned Investment Now, substitute the given values in the above equation:
Y = [(1 - 17/20) × Y + 470] + 4370 Simplifying this equation, we get:
Y = (3/20) Y + 4840(17/20)
Y = 4840
Y = 28,470
Now that we know the equilibrium level of income, we can calculate the equilibrium level of consumption:
C = APC × Y = (1 - APS) × Y
Thus, we can write:
APS × Y = Private Savings
So, Private Savings = Y - C = Y - (1 - APS) × Y = Y × APS
Private Savings = 28,470 × (3/20) ≈ 4,271.25
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Related Questions
1. Your friend asks to borrow $50 and offers to pay you back with interest. What factors
would you consider in your decision to accept or decline their request?
Answers
The factors that you have to think about would before giving out the loan would be the following:
The loan periodThe ability to pay back the loanThe interest that is on the loanHow the money is to be returned.What is a loan?This is the term that is used to refer to an amount of money that would be given to a person that is the borrower by the lender for a period pf time and for them to pay back with interest.
To be able to determine if you are to give out a loan, you have to take the ability of the person to pay you back the amount as a fator.
Also you have to check the character of the person that you are to loan the money to.
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Jim and Lisa are buying their first home together. The purchase price is $157,500.00 and they are putting a 20 percent down payment on the home. They have been approved for a 20-year loan at a 6 percent interest rate. What is the total amount of interest that they will pay during the entire loan?
A. $84,724.16
B. $86, 518.40
C. $88,724.16
D. $90,518.40
Answers
Answer: D. $90,518.40
Explanation:
They are putting a 20% down payment on the home which means they are paying 80%;
= 80% * 157,500
= $126,000
First find the monthly payments;
Present value = Payment * ((1 - (1 + r)^-n) / r)
n= 20 * 12 = 240 months
r = 6/12 = 0.5%
126,000 = Payment * (( 1 - ( 1 + 0.5%)⁻²⁴⁰) / 0.5%)
126,000 = Payment * 139.58077168292915831291691663652
Payment = 126,000/139.58077168292915831291691663652
Payment = $902.70313
They'll pay that for 240 months;
= 902.70313 * 240
= $216,648.7512
Interest = 216,648.7512 - 126,000
= $90,648.7512
= $90,648.75
Closest answer is D.
Answer:
$90,518.40
Explanation:
In a small company's accounting department, the accounts receivable coordinator often takes the role of the ___.
Answers
Answer: B. credit and collection manager
Explanation:
In a small company, employees will typically have to act in more than one role but usually in roles that are related. As the Accounts Receivable coordinator, the closest role in the options would be that of Credit and Collection manager.
As Accounts receivable coordinator, the person is in charge of the accounts of those who owe the company so that there are no problems in payments, records or other errors and problems.
As Credit and Collection manager, their jobs will be similar as the credit and collection manager is in charge of evaluating potential debtors as well as following up on actual debtors to ensure that they pay what they owe the company.
Inkamva Lethu was established to offer counseling service for drug addicts and raise substance abuse awareness at no cost, identify form of ownership for this statement
Answers
Answer: Nonprofit Corporation
Explanation:
A Nonprofit corporation is one where the organization works to promote the good of the public in general either through charity, education, science, health and the like. These organizations provide their services at no cost and therefore rely on donations from benefactors to keep them going.
Inkamva Lethu is a Nonprofit corporation as it works for the public good by counseling drug addicts and raising awareness of substance abuse. They do this at no cost as well so they are a nonprofit corporation.
When you or someone else buys clothing or items produced in a foreign country, who benefits?
Explain your answer.
Answers
A health insurance policy pays 65% of physical therapy costs after a $400 deductible. In contrast, an HMO charges $11 per visit for physical therapy. Assuming no other medical expenses, how much would a person save with the HMO if they had 10 physical therapy sessions costing $40 each?
Answers
Health insurance policies are contracts between individuals or groups and insurance companies that provide coverage for medical expenses. The person would save $30 by choosing the HMO for 10 physical therapy sessions costing $40 each.
To calculate the savings with the HMO, let's compare the costs between the health insurance policy and the HMO for 10 physical therapy sessions costing $40 each.
With the health insurance policy:
There is a $400 deductible, which means the person will have to pay the first $400 out of pocket.
After the deductible, the policy pays 65% of the remaining costs.
Cost per session: $40
The amount covered by insurance: 65% of $40 = $26
Amount paid by the person: $40 - $26 = $14 per session
Therefore, for 10 sessions, the person would pay $14 x 10 = $140 out of pocket with the health insurance policy.
With the HMO:
The HMO charges a flat fee of $11 per visit for physical therapy sessions.
Therefore, for 10 sessions, the person would pay $11 x 10 = $110 with the HMO.
To calculate the savings, we subtract the cost of the HMO from the cost of the health insurance policy:
$140 (health insurance) - $110 (HMO) = $30.
Therefore, the person would save $30 by choosing the HMO for 10 physical therapy sessions costing $40 each.
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Define a Small Scale Enterprise as per ‘MSMED Act, 2006’.
Answers
Explanation:
the Government of India has in acted, small and medium enterprises development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is an enterprise where the investment in plant and machinery is more than rate 25 lakh but does not exceed rate.
david lives in an apartment in a high-crime area. in order to obtain physical damage insurance on his car, david promised to park the car in a garage with 24-hour security. this agreement, which was incorporated into the insurance contract, is an example of a
Answers
This agreement, that was incorporated into the insurance contract, is an example of a warranty.
What is warranty?A warranty is essentially a commitment made by the insured (policy holder) to either do or not do anything. Regardless of the reason of the loss and the coverages and exclusions in your policy, failure to comply with your warranty could void your coverage.
A guarantee made by the insured party that statements affecting the legality of the contract are accurate is known as a warranty in an insurance policy. Most insurance policies stipulate specific guarantees from the insured.
The insurer may void the insurance and refuse to pay claims if a warranty provided by an insured party turns out to be false.
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Consumers who get their electricity from coal-fired power plants are not paying the true cost of energy production in their monthly utility bills. Which of the following is true about utility bills for these consumers?
The bills do not include public health costs, such as those associated with air pollution.
Answers
The claim that utility rates for customers whose electricity comes from coal-fired power plants "do not include public health expenditures, such as those linked with air pollution" is accurate.
What is the primary discharge from a coal-based power plant?The principal gas released from a thermal power plant is carbon dioxide, and thermal power plants are a major factor in the rising amounts of carbon dioxide in the atmosphere globally.
What kind of fuel is used in thermal power plants that burn coal?The main fuel utilised in thermal power plants is coal. Petroleum gas and natural gas are also utilised. Was this response useful.
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One of the major trends in the lodging sector is that organizations are becoming more international.
O False
O True
Mark this and return
Save and Exit
Nex
Subm
Answers
What would most likely have a major impact on commercialization?
A) a nation-wide economic recession
B) development of a prototype
C) discovery of a point of difference
D) development of a protocol
Answers
The "development of a prototype" is most likely to have a major impact on commercialization.The correct option is B.
The prototype is the working model of a product which is used to test its operational processes like design, functionality, and performance.
The developing a prototype for businesses or organizations can evaluate the technical feasibility and market potential of their products to make necessary improvements before launching that product to market.
The perfect prototype can help the business or organization to attract investors and customers. A prototype can also provide valuable feedback from users and stakeholders.
Therefore, the correct option is B which is development of a prototype.
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Which one of the following business stakeholder groups can exert pressure on a business by imposing stricter credit terms, or by refusing to grant further credit?
A. D suppliers B. customers C. shareholders D. pressure groups
Answers
Answer:
A. D suppliers
Explanation:
Suppliers are traders who sell materials and other items to a business. Suppliers are stakeholders in any company that they supplier products or services. They have commercial interests as creditors to the company.
Because suppliers are the one's who sell to a business of credit, they are the only ones who can impose credit terms on the business. Suppliers may also relax the credit terms or deny the business credit facilities depending on their risk assessment of the company.
Kathy and Jake are purchasing a house and are financing $465,000. The mortgage is a 20-year
5/1 ARM at 3.5% with a 2/7 cap structure. What will the remaining balance be after the first 5 years?
a $396,038.65
b$427,354.28
c $407,836.29
d $377,238.57
Answers
Answer:
D
Explanation:
The remaining balance on a 20-year 5/1 ARM at 3.5% interest with a 2/7 cap structure after 5 years will be $377,238.57.
Pro life tip: Do NOT finance your home with an ARM mortgage.
Good luck in your studies!
June enters into a contract with Steeley Company to purchase a washer and dryer. She doesn’t understand the financing terms but signs the agreement anyway because she needs the appliances. The financing terms violate state laws on interest rate limits and she is unable to make all of her payments when they are due. Steeley sues when June breaches the contract. The court would:
Answers
Answer: be exercising judicial restraint if it requires June to pay as she promised, even if the agreement was unfair and unwise.
Explanation:
Judicial restraint simply means a situation whereby judges aren't allowed to inject their own preferences into rulings and legal proceedings. It simply means that judges should limit exercising their own power during legal proceedings.
In this case, since June doesn't understand the contract but still signed, the court would be exercising judicial restraint if it requires June to pay as she promised, even if the agreement was unfair and unwise. It's advisable for the court not to interfere in the matter and follow the normal proceedings.
In an adjusting entry for expenses incurred but not yet paid ______.
Answers
Answer:
a liability is increasing since cash will be paid in the future due to the expense incurred
Explanation:
Adjusting entries for accruals relate to entries that record revenues and expenses earned or incurred during the period prior to when the cash changes hands. Accrual adjustments include increasing assets and revenue or increasing expenses and liabilities.
What needs to happen to the money supply to recession?
Answers
Answer:
In order for your money suppy to recession you need credit.
Explanation:
Your credit needs to be good.
Susan has three credit cards - 1) an Old Navy card she got her last year of high school and now doesn't use that much, 2) a Visa card she got while in college and pays an $50 annual fee for benefits she doesn't use that much, and 3) a Mastercard she opened last month which has no annual fees. Susan has decided that she only needs two credit cards, which one should she get rid of
Answers
Answer: Visa card
Explanation:
Since Susan has decided that she only needs two credit cards, then she should keep the old Navy card she got her last year of high school and the Mastercard that she opened last month which has no annual fee.
In this case, since she doesn't use the Visa card that she got while in college and th e card pays an $50 annual fee for benefits that she doesn't use that much, thus means that the card isn't beneficial to her. Therefore, she should get rid of the Visa card.
TRUE/FALSE. containerization was a major driving force in expanding global trade.
Answers
Containerization was a major driving force in expanding global trade. So, the statement is true.
Containerization revolutionized the shipping industry and had a significant impact on global trade. The introduction of standardized shipping containers, which can be easily transported across different modes of transportation (ships, trucks, and trains), revolutionized the logistics and efficiency of the shipping process. This innovation made it faster, more cost-effective, and more secure to transport goods internationally.
Containerization enabled the consolidation of goods into standardized containers, simplifying the loading and unloading process, reducing labor costs, and minimizing damage during transportation. It also facilitated the use of larger cargo ships, allowing for economies of scale in shipping operations. The increased efficiency and lower costs associated with containerization made global trade more accessible and viable for businesses of all sizes.
By providing a reliable and efficient method of transporting goods, containerization facilitated the growth of international trade, connecting markets and economies around the world. It played a pivotal role in fostering globalization and enabling the exchange of goods on a global scale.
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Why is creative thinking important to generate business ideas?
Answers
Answer: Creative thinking is necessary for business problem-solving.
Explanation: The skill of creative thinking is a helpful skill because it teaches workers/business owners to find opportunities and ways to improve something even if the situation is challenging. This also lets the person face a problem or situations by a different view. I hope this helped!
The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs. true false
Answers
The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs.
This statement is true.
Material handling can be considered as a specialized activity for modern manufacturing units. From the time, the input material or raw materials enter into the industrial unit and go out of the building in the form of finished products, these are handled at all stages in between however it doesn't matter, on the shop floor or in the stores.
It is estimated that the average material handling cost is roughly 30 to 60% of the cost of production. This is so because the majority of production time is consumed in handling materials before, during and after the manufacturing process.
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Objectives of Promotion
Answers
Answer:
Promotion refers to any type of marketing communication used to inform or persuade target audiences of the relative merits of a product, service, brand or issue. The aim of promotion is to increase awareness, create interest, generate sales or create brand loyalty.
Hope this helped you!
Explanation:
When someone makes a choice, what are all the other alternatives that are given up by making that choice called?
Answers
When someone makes a choice, what are all the other alternatives that are given up by making that choice called trade-offs.
All of economics is about tradeoffs. Any circumstance where choosing one course of action results in giving up another, often foregoing a reward or opportunity, is referred to as a tradeoff. A bonus in one area must be a minus in another, and in these zero-sum circumstances we encounter tradeoffs. The investigation of how humans distribute limited resources and bargain over opportunity costs is a central tenet of economic theory.
If we apply economic principles to resources other than money, economics provides instruments that we may utilize as guides for achieving our goals in life. Even while we all understand that money isn't limitless, we frequently treat our time, energy, and attention as if they are.
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what are the three areas on the dashboard that let you find and perform every feature and function you need in quickbooks online?
Answers
The three areas on the dashboard that let you find and perform every feature and function you need in QuickBooks online are:
Navigation bar top Navigation bar Gear menuWhat are the areas on the dashboard on QuickBooks that allows feature and function?The dashboard which is online area where your website data is been displayed and on the QuickBooks , there is a navigation bar that help the movement from one data to another.
The top menu bar also posses its function to help the user to be able to enjoy the dashboard.
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How does a company make a product innovative?
A. Develop different features
B. Create the same product as a competitor with a different name
C. A good price point
D. Market the product
Answers
Explanation:
Companies realize innovations through a combination of market research, internal idea generation, customer requests and a variety of other factors. They also frequently discover innovative solutions by chance. Manufacturers typically maintain a balance between market- and customer-driven innovation efforts.
jerilyn has been approved for a home loan in the amount of $250,000 with two points. if one point equals one percent (1%) of the loan balance, what will the points cost jerilyn? how are the points shown at closing?
Answers
The cost of two points for Jerilyn's $250,000 home loan will be $5,000, shown as a fee on the closing statement.
To calculate the cost of points for Jerilyn's home loan, we need to determine the value of one point and then multiply it by the loan balance. Since one point equals one percent of the loan balance, we can find the value of one point by multiplying 1% (0.01) by the loan amount of $250,000:
Value of one point = 0.01 * $250,000 = $2,500
Therefore, the cost of two points for Jerilyn's home loan would be:
Cost of points = Value of one point * Number of points = $2,500 * 2 = $5,000
So, the points will cost Jerilyn $5,000.
At closing, the points are typically shown as a fee or charge on the closing statement or settlement statement. The exact presentation may vary depending on the specific format used by the lender or title company handling the closing. The fee will be disclosed as a separate line item, indicating the cost of the points.
In summary, the cost of two points for Jerilyn's home loan amounting to $250,000 will be $5,000, and the points will be shown as a fee or charge on the closing statement.
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The local smoothie shop lowers their price on all fruit smoothies. Was this a change in demand or change in quantity demanded?
a
no change
b
change in demand
c
change in quantity demanded
d
change in both
Answers
A. There was no change in demand or quantity
A credit union
Question 3 options:
is larger than most banks
promotes good spending habits among its members
will allow anyone to join
provides financial service at a higher cost than a bank
Answers
Answer: A credit union promotes good spending habits among its members.
One of the main objectives of any company should be to let the target market know of its existence.
True or False
Answers
what is a living will?
Answers
Answer:
A living will is a document that spells out what your wishes are if you're still alive, but unable to speak for yourself.
Explanation:
Answer:
A living will, despite its name, isn't at all like the wills that people use to leave property at their death. A living will, also called a directive to physicians or advance directive, is a document that lets people state their wishes for end-of-life medical care, in case they become unable to communicate their decisions. It has no power after death.
If you’re helping someone with their estate planning (or doing your own), don’t overlook a living will. It can give invaluable guidance to family members and healthcare professionals if a person can’t express his or her wishes. Without a document expressing those wishes, family members and doctors are left to guess what a seriously ill person would prefer in terms of treatment. They may end up in painful disputes, which occasionally make it all the way to a courtroom.
Review the following statements regarding a petty cash fund used in a business. Select the one that is correct. Multiple choice question. The cashier of a fund will write checks for small payments like postage, supplies and deliveries. Only the petty cashier is responsible for paying cash from the fund. A petty cash fund is controlled by top management. A check written against the fund is cashed when the fund is replenished.
Answers
Answer:
Only the petty cashier is responsible for paying cash from the fund.
Explanation:
A petty cash fund can be regarded as small amount of cash that is kept on hand or kept in a locked drawer which could be used in payment for minor expenses. These expenses could be office supplies expenses or reimbursements. There should be periodic reconciliations for a petty cash fund, and the transactions should also be recorded on the financial statements. As regards to petty cash fund used in a business, Only the petty cashier is responsible for paying cash from the fund.