QuestionQuestion

Make of list of things that determine or influences how much stuff that you want to buy or spend?

If you made $1000 a month how much would you spend? What if you made $2000 a month, how much would you spend?

Put this on a graph with how much you consume on the vertical or Y-axis and your income on the horizontal or X-axis. What is the slope of that line?

- Slope = the change in y/change in X
- or the change in your consumption (C)/the change in your income (Y-T)

Solution PreviewSolution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

There are many factors that determine my spending patterns. These have been listed below.
• My income levels: If I am able to earn a lot, I spend also more, compared to when I earn less. I always want to save my money and that makes me a miser when it comes to spending. I spend only on needed items when my income is low and when my salary is high, I spend on discretionary items also such as travel, outside restaurant, etc.
• The interest earned on savings: When the interest that can be earned by investing the money is high, my marginal propensity to save is also high and I tend to spend less. This is because I want to save as much money feasible so that I can invest the money in higher interest rates and earn higher investment income. When the interest rates are low, I tend to spend more as the marginal propensity to save is less...
$38.00 for this solution

PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

Find A Tutor

View available Finance Tutors

Get College Homework Help.

Are you sure you don't want to upload any files?

Fast tutor response requires as much info as possible.

Decision:
Upload a file
Continue without uploading

SUBMIT YOUR HOMEWORK
We couldn't find that subject.
Please select the best match from the list below.

We'll send you an email right away. If it's not in your inbox, check your spam folder.

  • 1
  • 2
  • 3
Live Chats