uestion 1: In the case of a 2 sector economy model, when the income increases from RM 400 mil to RM 450 million, consumption increases from 200 million to 230 million. The autonomous investment is RM100 million. Assume autonomous consumption is 1.1) Calculate the value of MPC 1.2) Calculate the value of MPS 1.3) Derive consumption function, if the autonomous consumption is RM100 million 1.4) Construct saving function, if the autonomous saving is RM100 million Question
uestion 1: In the case of a 2 sector economy model, when the income increases from RM 400 mil to RM 450 million, consumption increases from 200 million to 230 million. The autonomous investment is RM100 million. Assume autonomous consumption is 1.1) Calculate the value of MPC 1.2) Calculate the value of MPS 1.3) Derive consumption function, if the autonomous consumption is RM100 million 1.4) Construct saving function, if the autonomous saving is RM100 million Question
Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:William J. Baumol, Alan S. Blinder
Chapter8: Aggregate Demand And The Powerful Consumer
Section: Chapter Questions
Problem 3TY
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Question 1:
In the case of a 2 sector economy model, when the income increases from RM 400 mil to RM 450 million, consumption increases from 200 million to 230 million. The autonomous investment is RM100 million. Assume autonomous consumption is
1.1) Calculate the value of MPC
1.2) Calculate the value of MPS
1.3) Derive consumption function, if the autonomous consumption is RM100 million
1.4) Construct saving function, if the autonomous saving is RM100 million
Question 2:
Given the following information
C=200 + 0.75Y
I=100
G=50
T=100
X=100
M=50
Find the equilibrium income by using the formula of Y = C + I + G + (X – M)
Question 3:
The following information is about monetary items for the country.
ITEMS
RM(Million)
Paper money
5500
Negotiable certificate of deposit
3600
Fixed & savings deposits in other banking institutions
7900
Fixed & savings deposits in commercial banks
15000
Demand deposits
9000
Bank Negara Certificates
12000
***Fiat Money = RM8000mil
Calculate:
a) Coins
b) M1
c) M2
d) M3
e) Quasi Money
f) Broad Money
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