Can you help me with d/ e and f Conceptual / Calculation QuestionThe economic researcher defined the consumption function as follow:C = $600 billion + 0.9Y,a. What is the MPC?b. How largec. How much do consumers spend with incomes of $4 trillion?d. How much do they save?autonomous C?Now, the economist assumes that the marginal propensity to consume is 0.95,e. What is the value of the multiplier?f. What is the marginal propensity to save?Note: show all the necessary formula and calculations. Less mark(s) will be given if you failed toshow calculation(s)!

As you asked specifically, D, E, and F to answer so I will only answer these parts. Marginal…

The economic researcher defined the consumption function as follow: C = $600 billion + 0.9Y. a. What is the MPC? b. How large is autonomous C? c. How much do consumers spend with incomes of $4 trillion? d. How much do they save? Now, the economist assumes that the marginal propensity to consume is 0.95, e. What is the value of the multiplier? f. What is the marginal propensity to save?

The economic researcher defined the consumption function as follow: C = $600 billion + 0.9Y. a. What is the MPC? b. How large is autonomous C? c. How much do consumers spend with incomes of $4 trillion? d. How much do they save? Now, the economist assumes that the marginal propensity to consume is 0.95, e. What is the value of the multiplier? f. What is the marginal propensity to save?

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 7SQ

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