Suppose that the marginal propensity to save is dS = 0.93 dy In(y + 1) y + 1 (in billions of dollars) and that consumption is $6.07 billion when disposable income is $0. Find the national consumption function. In y– 11 2 + 6.02y10 9. C(y) = 0.93у — 2

Q: Suppose that the level of GDP increased by $300 billion in a private closed economy where the…

A: Answer: Given, Change in GDP ∆GDP=$300MPC (marginal propensity to consume)=0.9Change in aggregate…

Q: If consumption is $6 billion when disposable income is $0, and if the marginal propensity to save is…

A: Answer: Given, Consumption at zero level of disposable income (autonomous consumption)= $6 billion…

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: Y-2VF-8 VY+2 Suppose the savings function of a country is S = and savings (S) are measured in…

A: Marginal propensity to save (MPS) refers to the proportion of a pay raise that a consumer saves…

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: If consumption is $9 billion when disposable income is $0, and if the marginal propensity to save is…

A: According to the question given that the the level of autonomous consumption $9 billion and marginal…

Q: An economy has the following consumption function: C=$200+0.8DI . The government budget is balanced,…

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

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A: Equilibrium level of income is determined by equating national income (Y)  to sum of aggregate…

Q: Suppose a government increases its purchases by $5 billion, and the marginal propensity to consume…

A: In an economy, the consumption and investment decisions of the people depends upon various factors…

Q: Consider an economy with the following consumption function: C = 400 + 0.60YD, and investment…

A: Consumption function: C=400+0.60YD      .... (1) I=600 Marginal propensity to consume increases by…

Q: With no taxes or transfers, disposable income = GDP, denoted Y. In trillions of dollars, - marginal…

A:

Q: If marginal propensity to save is 0.1 Find the value of multiplier

A: The information being given to us is as follows:- Marginal propensity to save = 0.1 We need to find…

Q: When marginal propensity to consume is 0 the value of investment multiplier will be 1 True/False

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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 = 3/5, then the government purchases multiplier is 5/3 5/2 5 1.5

A: Marginal propensity to consume is the proportion of the additional income used for the consumption…

Q: Consider an economy in which all taxes are autonomous and the following values of autonomous…

A: Since you have posted multiple subparts, as per the guidelines we can solve only the first 3…

Q: The marginal propensity to save is 0.2 and the proportional rate of tax is 0.4. The multiplier of…

A: The sum of marginal propensity to consume and marginal propensity to save is 1.

Q: An increase of R5 billion in income in a macroeconomy leads to an increase in R3 billion in…

A: Answer to the question is as follows :

Q: 7. If the consumption function is C=80 + 0.6Y, the marginal propensity to save equals: (A) 0.6. (B)…

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Q: If consumption is $6 billion when disposable income is $0, and if the marginal propensity to save is…

A: Consumption function shows the relationship between the disposable income(Y) and consumption…

Q: Choose the correct answer: . If consumption is $25,000 when income is $26,000, and consumption…

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

Q: 3 billion when disposable

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

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Q: The marginal propensity to save is 0.2. Equilibrium GDP will decrease by $50 billion if the…

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Q: Assume a closed economy in which, there is no government. If autonomous consumption is80, autonomous…

A: If the economy is closed and there is no government then the equilibrium output or income is equal…

Q: What would be the value of Marginal propensity to save when the multiplier is given as 7.9

A: Given: Multiplier = 7.9 To find: The value of MPS.

Q: Suppose that the marginal propensity to save is ds = 0.29 dy (in billions of dollars) and that…

A: Given: dSdy=0.29To find the national consumption function:dCdy=1-dSdy

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

A: In a closed economy, Y=C+I+G.  Given: Intended investment =200 Consumption function: C = 250 +…

Q: An increase of R5 billion in income in a macroeconomy leads to an increase in R3 billion in…

A: Marginal propensity to save: Minimal affinity to spare is the extent of an expansion in pay that…

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: If consumption is $5 billion when disposable income is $0 and if the marginal propensity to consume…

A: Consumption function: It means the relationship between consumption and disposable income.

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: The fact that marginal propensity to consume (MPC) is larger than 0 means that  a. Consumption will…

A: Marginal propensity to consume is the percentage of change in consumption spending due to percentage…

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: Assuming that the MPC is 0.80, calculate the value of the government expenditures multiplier.

A: Given:- MPC=0.80 To calculate:- Government expenditure multiplier=? Please find the image attached…

Q: If consumption is $6 billion when disposable income is $0, and if the marginal propensity to save is…

A:

Q: An increase of R5 billion in income in a macroeconomy leads to an increase in R3 billion in…

A: Marginal propensity to save tells us how saving changes when income increases  MPS = 1 - MPC

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

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

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…