Find equilibrium income when investment demand is 400 and C = 0.8Y. (b) Would output be higher or lower if the consumption function were C = 100 + 0.7Y?
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(a) Find equilibrium income when investment
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- If the consumption function is C = 80 + 0.6Y, then the marginal propensity to consume equals: 0.6. 0.4. 0.5. -0.4.Which of the following statements is correct? The saving function and the consumption function have the same slope. The consumption function is the same in the short and in the long run. Disposable income does not affect the level of savings. The steeper the consumption function, the flatter the saving function.Suppose that the government grants investment tax credits without changing the overall tax revenue T. In this case, the investment demand function will shift _____, but in equilibrium, the quantity demanded of I will _____ because r will increase.
- Determine equilibrium levels of income and consumption for the following functions. a.C=20+0.75y,I=20, b.C=50+0.60y and I=30.where C&I, are consumption and investment respectively in billions of nairaSuppose a closed economy has an aggregate consumption function given by C = 50 + 0.50Yd and generates $2500 output and income in equilibrium. Suppose also that the government spends 400 and imposes a lump-sum tax of 100. What is the level of intended investment?Given the marginal propensity to consume (MPC) = 0.6 + 0.1/√Y and the autonomous consumption (c) = 45 when income (Y) = 0. Find the consumption function.
- If consumption is $8 billion when disposable income is $0, and if the marginal propensity to consume is 0.60, find the national consumption function C(y) (in billions of dollars).Find MPC in the given consumption function Y=100+0.8YIf the consumption function is of the form C = 80 + 0.4Yd, the MPS equals Select one: A. -0.6. B. -0.4. C. 0.4. D. 0.6. Given an MPC equal to 0.9, a decrease in business investment expenditures by RM25 billion translates into Select one: A. an increase of agregate output by RM250 billion B. a decrease of aggregate output by RM25 billion C. an increase of aggregate output by RM250 billion D. a decrease of aggregate output by RM250 billion When income is equal to zero, consumption is equal to Select one: A. induced consumption B. aggregate consumption C. autonomous consumption D. endogeneous consumption If the MPC in a country is 0.8, the simple Keynesian multiplier would be Select one: A. 0.8 B. 1.8 C. 0.2 D. 5.0 Which of the following is multiplier formula? Select one: A. 1/MPC B. 1/MPS C. 1/APC D. 1/APS
- Q1 4. Suppose you earn same income as one of your cousins but expect to live longer than your cousin, how would your consumption function be different than that of your cousin? Would you consumer more or less than him? 6. Average propensity to consumer along a linear consumption function is always constant; true or false? Justify your response.Multiple choice If the marginal propensity to consume increases: (1) The slope of the consumption function will be steeper;(2) There will be a movement from left to right along the consumption function;(3) The consumption function will shift parallel upwards;(4) The consumption function will shift parallel downwards.In the Keynesian-cross analysis, if the consumption function is given by C=100+0.6(Y-T),and planned investment is 100,G is 100, and T is 100,then the equilibrium Y is: Select one: a. 400 b. 350 c. 750 d. 600
