(1) : (2) : (3)DI - C : DI - C : DI - C$0 - $4 : $0 - $65 : $0 - $210 - 11 : 80 - 125 : 20 - 2020 - 18 : 160 - 185 : 40 - 3830 -

25 : 240 - 245 : 60 - 5640 - 32 : 320 - 305 : 80 - 7450 - 39 : 400 - 365 : 100 - 92Refer to the given consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. Suppose that consumption decreased by $2 billion at each level of DI in each of the three countries. We can conclude that thea. marginal propensity to consume will decline in each of the three countries.b. marginal propensity to consume will remain unchanged in each of the three countries.c. average propensity to save will fall at each level of DI in each of the three countries.d. marginal propensity to save will rise in each of the three countries.

Business

You might be interested in

Which of the following can cause an increase in the price of a discount bond? a. An increase in the YTM. b. A decrease in the YT

soldi70 [3635]

Response:

b. A reduction in the YTM.

Detail:

The valuation of the bond is derived from the present worth of expected cash flows. When determining these present values for cash inflows or the bond's price, the YTM is utilized for discounting. It is known that a higher interest rate results in a lower present value, whereas a lower interest rate yields a greater present value. Interest rates and present value have an inverse relationship. Thus, a decrease in YTM will enhance the bond's price.

3 0

3 months ago