Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

E-Commerce 2013 Business Technology Society

Authors: Ken Laudon, Kenneth C Laudon

9th Edition

0132730359, 978-0132730358

More Books

Students explore these related Economics questions