True or False: It is possible, in a basic hours towards leisure and income towards consumption model, that the Earned Income Tax Credit can encourage more hours towards leisure, less hours towards work and more money towards consumption
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True or False: It is possible, in a basic hours towards leisure and income towards consumption model, that the Earned Income Tax Credit can encourage more hours towards leisure, less hours towards work and more money towards consumption.
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- In the Income-Expenditure model, which of the following are assumed to be given (or exogenous)? a Incomes and expenditures b. None of these c. Prices and incomes d. Expenditures and Prices e. Prices and interest rates For this year. • You earn a before-tax income of $77,000, on which you pay taxes equal to $4,000. • You receive $4,000 in benefits from the government. What is your disposable income this year? Do not enter the $ sign. Round to one decimal place if required. Answer:“Permanent Income of consumption is just the average of all current and future incomes. Thus, one does not need to do the maximisation of intertemporal utility”. True or False. Discuss according to the model. Note that you need to discuss according to the model?For a given household, the value of change in consumption is $2500 and the change in income is $6200 What would be the value of Marginal propensity to Consume
- Economics: Public Economics Question: 1 Refer to Graph 2. Suppose the TANF program is established. What is the individual’s consumption if they spent all of their time in leisure? Do not include a dollar sign when writing your answer. Guess: 10,000 (with margin: 0) Question: 2 Refer to Graph 2. For every dollar earned by the individual below the cutoff (such that they are eligible for TANF), benefits decrease by how much? Do not include a dollar sign when writing your answer. Guess: 0.5 (with margin: 0) Question 3: Which of the following types of balanced budget requirements (BBRs) are least effective in restricting deficits? a. ex post BBRs b. neither ex ante nor ex post BBRs c. both ex ante and ex post BBRs d. ex ante BBRs Thank you for your help and support Academic Agent!What does it mean when talking about full income and price when considering the household consumption model?Discuss the lifecycle income hypothesis theory of consumption and explain its applicability in the Kenyan context.
- You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)Suppose that a person can borrow and lend at an interest rate of 10 percent. But there is a 5% rate of inflation and one has to pay an income tax of 30 % on all interest income. If you borrow money, you can deduct interest as an expense. Where current consumption is on the horizontal axis and future consumption is on the vertical axis: (a) the budget line will have a kink at the point of no saving or lending. (b) the budget line will be a straight line with a slope of about 1: 02. (c) the budget line will be a straight line with a slope of about 1:05. (d) the budget line will be a straight line with a slope of about 1:35.identify the equilibrium level of income given y=600;,C=550; I=100 S=? solve for the S?
- According to Irving Fisher’s two period model, if the consumers face borrowing constraint, the first-period consumption cannot exceed first-period income True FalseWhat is your MPC? Would a welfare recipient and a millionaire have the same MPC? What determines a person’s MPC?With the help of consumption function C=10+0.5Y, calculate savings at an income level of $500