tradeoff between current consumption and savings

Related BrainMass Solutions

• Linear Prodcution Possibilities Frontier

  200648 Linear Prodcution Possibilities Frontier Draw a linear PFF representing the tradeoff between hot dogs and buns with 120 million workers available.

• Dramatic shift in the age distribution of the U.S. workforce

  What impact might this dramatic shift in the age distribution of the U.S. workforce have had on the U.S. current-account balance over this 15 year period? (Hint: Consider the difference in savings behavior between younger and older workers.)

• Indifference Curve Analysis Used on Pension System

  Future consumption would then basically indicate savings because savings is defined as foregoing present consumption for the sake of larger consumption in the future. 2.

• marginal propensity

  As income increases, the MPC will decrease and savings will increase. Since individuals are able to fulfill their current consumption requirements they save for the future. So MPC decreases and savings increase.

• effect of changing the savings rate on consumption

  · Identify and describe the effect of changing the savings rate on consumption.

• According to the life-cycle hypothesis, what is the typical

  What impact does this behavior have on an individual's lifetime consumption pattern? -- In the early stages of the life-cycle, consumption exceeds current income by a significant amount, and is seen as independent of the level of income.

• values of investment, national saving, the current account balance, the capital, and financial account balance, net exports, GDP, and GNP in this country

  Calculate net exports as the difference between output and absorption. What is the relationship between net exports and foreign lending? 4.

• Public Finance

  Explain an individual's choice between consumption and saving.

• Using the concept of unplanned investment

  In the same way, at $300 billion savings is $8 billion and planned investment is $16 billion, which means that there is an $8 billion difference between planned and unplanned investment.