Assume that in 2013 mollyrsquos autonomous consumption is, Ask an Expert

Economics

Assume that in 2013 Molly’s autonomous consumption is $2000 and that her disposable income $45000 with an MPC of 0.7:

a. How much will Molly save in 2013?

b. How much will Molly spend on consumption in 2013?

c. Assume that in 2014 the government increases the tax Molly pays by $1000, what will her new consumption spending be?

d. Believing the tax hike to be too large, the government reduces Molly’s taxes to the 2013 level and additionally provides her with a transfer payment credit of $500. What will her new consumption spending be?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91234494

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question a large video program and internet provider has

Question: A large video program and internet provider has seen a 10% annual rate of subscriber growth over the past three years. The growth rate has been spurred by a marketing department that typically has three or four ...

Question look anywhere around your home or office and you

Question: Look anywhere around your home or office and you are sure to find products from every corner of the world. Even products that may be labeled as "Made in (fill in the blank)" are generally assembled from compone ...

Question a region is in the middle of a very cold and snowy

Question: A region is in the middle of a very cold and snowy winter. As a result, hot chocolate has become more desirable, and many of the shipping channels for imported goods have closed due to the weather. What will ha ...

Question the demand for imported honda automobiles is given

Question: The demand for imported Honda automobiles is given by the following equation: Q H = 1200 - 20P H + 10P C + 200P G The price of Hondas, P H = 60, the price of Chevrolets, P C = 70, and the price of gasoli ...

Question 1 the widget company has the following production

Question: 1. The Widget Company has the following production function. Number of Workers 0 1 2 3 4 5 Number of Cases produced 0 9 17 24 30 35 If widgets sell for $6 each and the wage rate is $33, how many workers will th ...

Question social and institutional innovations are as

Question: "Social and institutional innovations are as important for economic growth as technological and scientific inventions and innovations." What is meant by this statement? Explain your answer. The response must be ...

Question draw a circular flow model showing how specific

Question: Draw a circular flow model showing how specific resources are exchanged in EACH of two scenarios below: 1) Microeconomic Scenario: show how the Circular Flow model works in your personal life. You are the House ...

Question a monopolist has two types of customers there are

Question: A monopolist has two types of customers. There are 100 of Type A, who will each pay up to $10 for a single unit of the good, and 50 of Type B, who will each pay up to $8. Neither is willing to purchase addition ...

Question costco typically pays its workers higher wages

Question: Costco typically pays its workers higher wages than does Wal-Mart. One analyst argues that Costco pays higher wages "because it requires higher-skilled workers to sell higher-cost products to more affluent cust ...

Question describe a situation in which you were highly

Question: Describe a situation in which you were highly motivated to do well. What motivated you? Why? How did you perform? (select an example from work if you can otherwise use situation from school or a team you were o ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert