If consumption is $5 billion when disposable income is $0 and if the marginal propensity to consume is   dC/dy =1/(square root of y+1)+ 0.9      (in billions of dollars) find the national consumption function.

Q: Consider a hypothetical closed economy in which households spend $0.60 of each additional dollar…

A: Marginal Propensity to Consume (MPC) is the proportion of an increase in income that gets spent on…

Q: If the marginal propensity to consume equals 0.80, the tax rate equals 0.20, and the marginal…

A: Marginal propensity to consume is the proportion of change in income spent on consumption.Marginal…

Q: Suppose that autonomous consumption (a) is 200, private investment spending (I) is 340, government…

A: Given -  a = 200, I = 340, G = 300, T = 300, b = 0.8, t = 0.25

Q: The aggregate consumption function is C=1,000 + 0.9Yd. If income is $3,600 and net taxes are $600,…

A: Given: C=1000+0.9YdY=3600t=600

Q: Suppose that when disposable income decreases by $2,000, consumption spending increases by $1500.…

A: Marginal propensity to consume is defined as the change in consumption divided by change in income.

Q: Assume MPC = 0.9, MPM = 0.3 and the Keynesian expenditure multiplier is 2, then the MPT must equal…

A: "The keynesian expenditure multiplier measures how a change in private consumption spending,…

Q: If the Marginal Propensity to Consume (MPC) is .90, estimate the total (multiplied) effect of…

A: Multiplier:Multiplier can be calculated as follows:

Q: If the multiplier is 5, then the MPC is   0.05 0.5 0.6 0.8

A: Macroeconomics discusses economic behavior in an aggregate manner. It explains the economy as a…

Q: If the MPC In an economy Is 0.80, government could close a recessionary expenditure gap of $100…

A: Meaning of Money Multiplier: As from the word, the money multiplier refers to the situation under…

Q: lease kindly assist with the following QnA Induced consumption is:  (a) the part of consumption…

A: 1. Induced consumption is the part of the consumption that varies with change in income . The…

Q: The economy of country B is characterized by the following: • Aggregate output: Y • Investment…

A: According to the national income identity, gross domestic product is calculated by adding consumer…

Q: Suppose that autonomous consumption is 2,190, government purchases are 590, taxes are 0, planned…

A: An autonomous spending depicts the parts of an economy's total use that are not influenced by that…

Q: If the marginal propensity to consume (MPC) equals 0.25 and the government increases spending by…

A: the marginal propensity to consume is a metric that quantifies induced consumption, the concept…

Q: Q6: If the Marginal Propensity to save (MPS) is the following function of income: S'(Y) = 0.1– 0.…

A: [Since more than 1 question are posted, only 1st one is answered as per policy]   (Question 6)…

Q: Keynesians believe that the multiplier effect of an increase in government spending will be that of…

A: Answer to the last two parts are given:

Q: If the MPC in an economy is 0.9, a $4 billion increase in government spending will ultimately…

A: MPC or Marginal Propensity to Consume measures the increase in spending with the increase in…

Q: Given C=500 + 0.80Y and I = 100 and C and I are the only components of AD.   Based on the…

A: Given : C=500 + 0.80Y  I = 100

Q: Income is 678 Trillion and consumption is 662 Trillion then income increases to 698 Trillion and…

A: Note : Since you have uploaded multiple questions , only the first question shall be answered at a…

Q: What is the value of MPC if marginal propensity to save is .1.

A: Given the value of marginal propensity to save = 0.1 Now we have to find the value of MPC.

Q: If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending…

A: It is given that MPS=0.1 and change in investment is $20

Q: ​If the marginal propensity to consume of an economy is 0.7, then the simple spending multiplier is:

A: Marginal propensity to save is defined as that proportion of the aggregate increase in income which…

Q: The change in output following a change in autonomous expenditure is known as the: (a)  Investment…

A: The term multiplier refers to the effect by which an increase in autonomous expenditure leads to an…

Q: Based on the condition and calculations, what is your conclusion on the marginal propensity to…

A: Given: Row 4: MPC=0.2 Spending multplier=1.25 Change in government spending=$800 Change in…

Q: Numeric answer If Government (or Investment) spending is increased by $10 with MPC = 0.75, then the…

A: Government spending multiplier: - it is a fraction that shows the magnitude of the change in…

Q: In the Keynesian model, an introduction of a proportional tax will: (a) increase the slope of the…

A: Proportional tax refers to a tax that takes the same percentage of income from people with all…

Q: if consumption function is C = 500 + 0.8Yd. Then, autonomous consumption is _____________   3. In…

A: Consumption function expresses consumer spending as a function of disposable income.

Q: If the MPC in an economy is 0.80, government could close a recessionary expenditure gap of $160…

A: Here, it is given that MPC is 0.8, which implies that an increase in income by 1 percent will lead…

Q: If economic predictions showed the U.S. GDP to be decreasing by approximately $500 billion next…

A: We will answer the first question only. Please resubmit the question with any other parts you'd like…

Q: If aggregate expenditures increase by $12 billion and equilibrium GDP consequently increases by $48…

A: Gross domestic product is the market value of all goods and services produced in the economy in a…

Q: Marginal propensity to consume = 0.8; In an economy with tax rate = 0.25 and Marginal propensity to…

A: Given: MPC = 0.8 MPI= 0.10 Tax rate= 0.25 Increase in autonomous spending = 250 units.

Q: The investment multiplier is:     negatively related to the MPS.     positively related to the…

A: The investment function shows the positive relationship between investment and income. It means as…

Q: Suppose that the marginal propensity to save is dS = 0.93 dy In(y + 1) y + 1 (in billions of…

A: Consumption is one of the components of aggregate demand, it shows how demand depends on the…

Q: Consumption ($) Disposable Income ($) 1,200 3,200 2,100 4,000 3,000 4,800 Calculate the Marginal…

A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption,…

Q: If the consumption function is of the form C = 80 + 0.4Yd, the MPS equals Select one: A. -0.6. B.…

A: 1) Given, C = 80 + 0.4Yd, MPC = 0.4 We know that, MPC + MPS = 1 MPS = 1 - MPC MPS = 1 - 0.4 = 0.6 2)…

Q: Consider a hypothetical closed economy in which households spend $0.80 of each additional dollar…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: If the marginal propensity to consume (MPC) is .90 estimate the total (multiplied) effect of…

A: Marginal propensity to consume measures the proportion of extra income that is spend on consumption.…

Q: Suppose that autonomous consumption is 1,500, government purchases are 500, planned investment…

A: We can find the equilibrium GDP by the following formula: Y = C + I + G + NX where,  Y is…

Q: In a closed economy with government, the marginal propensity to consume is 0.5 and the tax rate is…

A: Formula for Multiplier is: Multiplier=11-c(1-t) where c= Marginal Propensity to consume t= Tax rate…

Q: Find the value of multiplier if MPS is 0

A: The information give to us is:- Marginal propensity to save = 0 Multiplier (k) = ? We have to…

Q: Question 24 In the definition of marginal propensity to consume, marginal refers to the amount of…

A: Consumption function is a sum of autonomous and induced consumption. Autonomous consumption is…

Q: The following information applies to questions 1-6. Suppose we have the following information for…

A: At equilibrium level of income (output), aggregate demand in the economy is equal to the aggregate…

Q: As shown in Exhibit 2, dissaving occurs:   Group of answer choices at $5 trillion. between 0 and $4…

A: The 45° line is the GDP or the total output line.  Savings is the portion of income that is not…

Q: If the investment multiplicator equals 1, it means that: Select one alternative: MPC = 2 MPC…

A: Macroeconomics analyzes the economy as a whole. It studies aggregate economic concepts such as…

Q: Suppose a closed economy with no government spending or taxing is capable of producing an output of…

A: An economy reaches equilibrium at that output level where its aggregate demand becomes equal to…

Q: In the  Keynesian  cross, assume  that  the  consumption  function is  given by C =  200  + 0.75  (Y…

A: Given  Consumption function C=200+0.75(Y-T) Planned Investment I=100 Government purchases =100…

Q: If consumption is $8 billion when disposable income is $0, and if the marginal propensity to consume…

A: consumption function-C(y)=C+cYdwhere C is the autonomous consumption and,c is the marginal…

Q: In an open economy with government, the marginal propensity to consume is 0.67, the tax rate is 0.2…

A: The economies around the world tend to operate upon the basis of various entities, such as the…

Q: State whether it is true or not  When the marginal propensity to consume is 0 the value of…

A: The marginal propensity to consume (MPC) is the percentage of a pay increase that a consumer spends…