For each of the following scenarios, predict how consumption changes for both consumption smoothers and hand-to-mouth consumers. How does total consumption change? Household incomes rise 6% this year, but income growth is expected to return to its normal growth rate of 2% next year. A country with an economy based heavily on agricultural production experiences a natural disaster so severe that it will take decades for farmers to recover. People expect the economy to experience a recession over the next six months

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.

Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $

All of the following led to the collapse of the soviet economy except a. a lack of worker incentives. c. inadequate supply of consumer goods. b. a reliance on production quotas. d. the introduction of a market economy.