economics

Suppose a handbill publisher can buy a new duplicating machine for $1,000 and the duplicator has a 1year life. The machine is expected to contribute $1,070 to the year's net revenue. Instructions: Enter your answer as a whole number. a. What is the expected rate of return? percent b. If the real interest rate at which funds can be borrowed to purchase the machine is 5 percent, will the publisher choose to invest in the machine? (Click to select) v Will it invest in the machine if the real interest rate is 6 percent? (Click to select) v If it is 8 percent? (Click to select) v Level of 0:33;?\" Consumption Saving APC APS MP0 MP3 (GDP = DI) $480 $496 $-16 1.0167 0.0167 0.8 0.2 520 528 -8 1 .0000 0.0000 0.8 0.2 560 560 0 0.0143 0.8 0.2 600 592 8 0.0267 0.8 0.2 640 624 16 0.0375 0.8 0.2 680 656 24 0.0471 0.8 0.2 720 688 32 0.0556 0.8 0.2 760 720 40 0.9368 0.0632 0.8 0.2 800 752 48 0.9300 0.0700 0.8 0.2 Suppose the wealth effect is such that a $10 change in wealth produces a $1 change in consumption at each level of income. Instructions: Enter your answers as a whole number. a. If real estate prices tumble such that wealth declines by $320, what will be the new level of consumption at the $680 billion level of disposable income? $I: b. What will be the new level of saving? 35