Tessa's break-even income is $10,000 and her MPC is 0.75. If her actual disposable income is $16,000, her level of:
A. consumption spending will be $14,500.
B. consumption spending will be $15,500.
C. consumption spending will be $13,000.
D. saving will be $2,500.
A. consumption spending will be $14,500.
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Arnie Ziffel has $20 per week to spend on any combination of pineapples and green tea. The price of a pineapple is $4 and the price of a bottle of green tea is $2. The table below shows Arnie's utility values
Use the table to answer the questions that follow the table Quantity of Pineapples Total Utility Marginal Utility Marginal Utility per Dollar Quantity of Green Tea Total Utility Marginal Utility Marginal Utility per Dollar 1 32 1 28 2 52 2 46 3 64 3 54 4 68 4 60 5 70 5 64 6 71 6 66 7 71 7 67 a. Complete the table by filling in the blank spaces. b. Suppose Arnold purchases 4 pineapples and 2 bottles of green tea. Is he consuming the optimal consumption bundle? If so, explain why. If not, what combination should he buy and why?
Gross private domestic investment does not include:
A. spending for new houses. B. spending to build up inventories. C. unintentional inventory investment. D. spending on employee salaries.