- On 3 T Ered D Out Of On On 4 Ed Out Of 5 Ed O Search For This Year You Earn A Before Tax Income Of 85 000 On Which 1 (204.74 KiB) Viewed 12 times
on 3 t ered d out of on on 4 ed out of 5 ed O search For this year: • You earn a before-tax income of $85,000, on which you pay taxes equal to $4,000. You receive $5,000 in benefits from the government. • Your marginal propensity to consume is 0.6. • Your autonomous consumption spending is equal to $10,000. What is your annual consumption spending this year? Do not enter the $ sign. Round to one decimal place if required. ● Answer: For this year: • You earn a before-tax income of $68,000, on which you pay taxes equal to $4,000. • You receive $5,000 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: Andy and Bernard have consumption functions as defined in class. They are economically identical except that Andy's wealth is higher than Bernard's. DON 33 amazon ssss 21°C Mos