The following table provides data for output (real GDP) and saving. a. Fill in the missing numbers (gray-shaded cells) in the table. Instructions: In the
The following table provides data for output (real GDP) and saving.
a. Fill in the missing numbers (gray-shaded cells) in the table.
Instructions:In the table, enter your answers for consumption as a whole number. Round your answers for APC and APS to 3 decimal places. Round your answers for MPC and MPS to 1 decimal place. If you are entering any negative numbers be sure to include a negative sign () in front of those numbers. Show your formulas/work [5points]
Level of Output and Income (GDP = DI) | Consumption | Saving | APC | APS | MPC | MPS |
$240 | $-16 | - | - | |||
260 | -8 | |||||
280 | 0 | |||||
300 | 8 | |||||
320 | 16 | |||||
340 | 24 | |||||
360 | 32 | |||||
380 | 40 | |||||
400 | 48 |
Instructions: Enter your answer as a whole number. Show your work[5 points]
b. What is the break-even level of income in the table? $ _____________
What is the term that economists use for the saving situation shown at the $240 level of income? ________________
c. For each of the following items, indicate whether the value in the table is either constant or variableas income changes:
The MPS: __________
The APC: __________
The MPC: __________
The APS: ___________
The table below lists all of the investment opportunities available for the businessesof a small island country.
Project | Project Cost, Millions | Expected Net Revenue, Millions | Rate of Return, Percent |
A | $15 | $16 | |
B | 9 | 10 | |
C | 27 | 28 | |
D | 44 | 47 | |
E | 7 | 7.5 | |
F | 16 | 17 |
Instructions: Round your answers to 1 decimal place. Show your Work [5 points]
a. Calculate the expected rate of return for each project. Fillin the values in the table.
b. If the nominal interest rate for investment borrowing is 9 percent and the expected inflation rate is 3 percent, what will be this country'slevel of investment?
____________$ million
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