Keynes stipulated that there are two determinants of investment. They are A,B,C, OR D ONE ANSWER A disposable income and wealth. B expected future profits and interest rates. C price and quantity. D interest rates and labor cost.
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Keynes stipulated that there are two determinants of investment. They are A,B,C, OR D ONE ANSWER
| A | disposable income and wealth. |
| B | expected future profits and interest rates. |
| C | price and quantity. |
| D | interest rates and labor cost. |
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- Suppose that the components of planned spending in an economy are C=500 +0.8(Y-T), I=1500, G=2000, X=0, T=0.25Y, find short run equilbrium output?Governments attempt to stimulate economics by offering firms temporary investment taxcredits. Explain the effects of this measure on investment spending. Would you expect apermanent or temporary measure to have more effect?MPC and MPS measure changes in consumption expenditure and saving that result from changes ?. A. expected inflation. (b) disposable income. (c). expected future income. (d)governmente expenditure on goods and services.
- Calculate the value of Consumption when average propensity to consume is 0.7 and the income is 700 (b) Can the value of APC greater than 1Find the consumption expenditure from the given information:- Autonomous consumption- 100 Marginal propensity to consume - 0.70 National income - 1000The economy is characterized by the consumption function C = C(Y − T) = 500 + 0.75 (Y − T). If income increases by 100, and taxes increase by 20, then consumption will increase by: 40 80 60 375 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
- Consumption function: C = 85 + 0,5Yd Investment function: I = 75 Government spending: G = 70 Net Taxes: T = 0,25Y Disposable income: Yd Y – T Equilibrium: Y = C + I + G You are given the following model for the economy of a country without a foreign sector: (d) Solve for equilibrium income. (Hint: Be very careful in your calculations. They are not difficult, but it is easy to make careless mistakes that produce dramatically wrong results.) (e) How much does the government collect in taxes when the economy is in equilibrium? (f) What is the government’s budget deficit or surplus?a) Given the following simple Keynesian Model: Y = C + I + G + X-M, where Consumption schedule is given as C= 100 +0.75Y Investment (I) = 50 Government (G) = 100 and Net Export (X-M) = 20 i. Calculate the Equlibrium Level of Income ii. Calculate the size of Consumption at the Equilibrium LevelMultiple choice question just tell me the answer Early empirical success of Keynes’s conjectures demonstrated. a. that the average propensity to consume falls over time.b. that consumers smooth consumption between present and future.c. a strong positive relationship between income and consumption.d. consumers saved lower fraction of income.
- What could increase autonomous consumption (Ca)? a) An increase in the products price level. b) A decrease in consumer wealth. c) A decrease in income taxes. d) A decrease in the Index of Consumer Confidence e) An expectation of lower future inflationsuppose you are given a consumption, investment and government expenditure functions as C= 700 + 0.6Y , I= 360+ 0.3Y and G= 440 respectively in the initial year. additionally, suppose that last year's aggregate demand determines this year's production. if autonomous investment rises from 360 to 400 then what will be the national income in three years ?In the Keynesian cross model, assume that the consumption function is given by C = 20 + 0.8(Y- T). Planned investment is 200; government purchases and taxes are both 400. There is no foreign trade. An economist has claimed that the full employment level of output is 2,400. How much should the government expenditure or taxes rise or fall to achieve full employment?