If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables fixed at investment 250 MD, Government expenditure 200MJD, Net exports 200MJD. The equilibrium income is equal to?

Q: Consider the following information: MPC = 0.9 Autonomous Investment = R200 m Autonomous…

A: Marginal propensity to consume: It measures the proportion of the change in the consumption level…

Q: QUESTION 13 If the consumption function is: C - 0.68(Disposable Income) + 400, the MPC- and…

A: Given: C= 0.68(Disposable income)+400

Q: Answer exercises 11-14 on the basis of the following information. Assume that equilibrium real GDP…

A:

Q: The slope of the consumption function is positive and equals 1-MPC True False

A: A consumption function shows the relationship between desired consumption expenditure and desired…

Q: Suppose a closed economy has an intended investment of 200 and an aggregate consumption function…

A: The equilibrium level of output and income is the point where the aggregate expenditure is equal to…

Q: Which of the following statements is most accurate? a.Most of the variation in consumption…

A: The consumption expenditure is the expenditure made by the consumers towards the consumption of…

Q: If the MPC is 0.7 and investment increases by $4 billion, the equilibrium GDP will Multiple Cholce…

A: Aggregate demand refers is the overall demand for goods and services in an economy. The aggregate…

Q: In an economy, autonomous consumption expenditure is $50 billion, investment is $200 billion, and…

A: "Since you have posted a question with multiple sub-parts will solve first three subpart for you.To…

Q: Suppose a closed economy has an aggregate consumption function given by C = 50 + 0.50Yd and…

A: Gross Domestic Product (GDP) is the value of all the goods and services produced domestically in a…

Q: Consider an economy with the output of 1 trillion Rupees. The MPC is 0.3. Due to a change in the…

A: The fiscal and monetary policies are used by governments to achieve certain economic goals. Fiscal…

Q: Consider the following function: C=100+0.7Y What is the average consumption when income is 200?…

A: Given information: C = 100 + 0.7Y Y = 200

Q: If a rise in national income of £100m causes consumption of domestic goods and services to rise by…

A: multiplier level depends on the consumption level , higher the consumption more the multiplier so…

Q: Consider the following model of national income determination  C = 3000 + 0.75 (y- t) T = 1000 I=…

A: Equation for national income determination is Y =C + I + G + NX Given, C = 3000 + 0.75 (Y- T) T =…

Q: Consider the Savings-Investment model involving: The Savings function: S = S0+s1Y+s2r; and the…

A: Equilibrium occurs at a point where : AD = AS  C + I = C + S  Cancelling C from both sides we get ,…

Q: Given the import function, Z = 300 + 2/3Y, which of the following statements is correct? (a) The…

A: Import- The goods and services that are produced in foreign countries and purchased by residents of…

Q: If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables…

A: Given data: Consumption, C= 50+0.75Y  Investment, I=250 MD Government expenditure (G)=200 MJD, Net…

Q: Suppose the consumption equation is represented by the following: C = 250 + 0.75Yp. The expenditure…

A: 9) Expenditure multiplier is given as  = 1/(1-MPC) Where MPC is marginal propensity to consume

Q: Find MPC in the given consumption function Y=100+0.8Y

A: The provided consumption function is: Y=100+0.8Y

Q: If the value of investment multiplier is 1 what will be the value of MPC

A: The information being provided is:- Investment multiplier = 1 MPC = ? We have to find the value of…

Q: At equilibrium expenditure, unplanned change in inventories must be positive True False

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables…

A: Given: Consumption function: C=50+0.75Y

Q: If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables…

A: Equilibrium Income Y = C + I + G + NX

Q: The fundamental equations in an economy are given as: Consumption function C =200+0.8yd Investment…

A: The consumption function is given                                                 C   = 200 + 0.8Y…

Q: If consumption is $3 billion when disposable income is $0, and if the marginal propensity to save is…

A: Consumption is a formula in economics that addresses the practical connection between all-out…

Q: If the MPC In an economy is 0.75 and aggregate expenditures Increase by $20 billion, then…

A: Spending multiplier (k) is a measure of effectiveness of the fiscal policy. It tells us how much…

Q: There is an increase in investment of $2000 million in an economy.  MPC is given to be as 0.…

A: The given information is as follows:- Increase in investment expenditure = $2000 MPC = 0  We have to…

Q: Assuming that each of the following functions are linear, give an economic interpretation of the…

A: a. C(Y) is the total national consumption when national income is Y. The slope of this function is…

Q: Consumption function is given as C = 0.4Y²+0.2Y + 50. a) Find the expression for marginal propensity…

A:

Q: 3 billion when disposable

A: The ‘consumption function’ is an economic formula which indicates the ‘functional relationship’…

Q: Suppose GDP = $10,000, autonomous consumption is $600 and planned investment spending is $350, the…

A:

Q: Assume a closed economy where the level of investment  is 300 and savings function is s = -30+ 0.15y…

A: Given: The saving function is: S = -30 + 0.15y The level of investment is = 300 To Find: The…

Q: Question 34 Identify the correct statement with respect to consumption and saving function. Both the…

A: Both consumption and saving have a direct relationship with disposable income which means the level…

Q: Suppose that initially equilibrium income was 200 units and that this was also the full employment…

A: In Keynesian macroeconomics, when the price level in the economy is assumed to be fixed then the…

Q: 1. If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables…

A: 1) Given  Consumption (C) = 50 + 0.75Y  Investment(I) = 250 MD Government expenditure(G) = 200MJD,…

Q: Suppose a closed economy has an aggregate consumption function given by C = 50 + 0.50Yd and…

A: Ans. The equilibrium level of income and output level is where AS = AD           where AD stands for…

Q: Given: C = 1080 +.6Y T= 100 + .25Y TR = 0 1) Find the equation for YDISP 2) Find levels of…

A: Given, C = 1080 + 0.6Y T = 100 + 0.25Y TR = 0 ................. 1. Answer The equation for…

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: Assume the current equilibrium level of income is $200 billion as compared to the full-employment…

A: MPC is the marginal propensity to consume which is the proportion of change in income spent on…

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: Find the consumption expenditure from the given information:- Autonomous consumption- 100…

A: # Lets first consider the concept of consumption expenditure. It refers to the spending on goods and…

Q: Suppose that a certain country has an MPC of .9 and a real GDP of $400 billion. If its investment…

A: The total production of good and services across the sectors of economy in a particular period of…

Q: For the consumption function C= 10 + 1-, (a) find the marginal propensity to consume when / = 16;…

A: In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate…

Q: If the MPC is 0.8 and investment increases by $3 billion, the equilibrium GDP will increase by $15…

A: A fiscal multiplier provides the number by which iteration occurs in the expansion or contraction of…

Q: The expenditure line is steeper than the 45-degree line. slopes upward because consumption depends…

A: Expenditure line is flatter than a 45 degree line. this is because for every increase in disposable…

Q: Suppose that the marginal propensity to save is ds = 0.25 (in billions of dollars) dy and that…

A: Given: Marginal Propensity to Save (MPS) = 0.25 Autonomous consumption i.e. the consumption at 0…

Q: Suppose a closed economy has an aggregate consumption function given by C = 100 + 0.75Yd and…

A: The gross domestic product is the market value of final goods and services produced within the…

Q: Consider an economy that is characterized by the following equations: C= 400 + 0.5 Yd I = 700 -…

A: In the mentioned question, we have been given consumption function, investment function, government…

Q: D00 crore Q.22. In an economy, C = 1000 + 0.75Y is the consumption function, where C is consumption…

A: The total income (Y) of a consumer comprises of consumption spending (C) and the savings (S).

Q: Given the consumption function, C = 3 + Vy + 2Vy where y marginal propensity to consume (MPC) at y =…

A: the consumption function describes a relationship between consumption and disposable income. here…