What is the initial change in consumption if an economy's MPC is 0.75 and there is a decrease in taxes of $1 billion? O $1.75 billion O $1 billion O $1.33 billion O $0.75 billion

ADVANCED ANALYSIS Suppose that the linear equation for consumption in a hypothetical economy is        C = 60 + 0.75Y.   Also suppose that income (Y) is $600. Determine the following values:   Instructions: For parts a, b, d, and f, round your answers to 2 decimal places if necessary. For parts c and e, enter your answers as a whole number.   a. MPC =    b. MPS =    c. Level of consumption = $    d. APC =    e. Level of saving = $    f. APS =

1. Compute the MPS and the MPC 2. Consider the consumption equation C=a=b.Y.  Compute a and b

Given thatG= 201= 35C = 0.9Ya + 70T= 0.2Y + 25Where, G, I, C, T and Ya are planned government expenditure and planned investment autonomous andconsumption expenditure and tax respectively.Calculate the equilibrium level of national income.

Please see attachment Answer neatly Show all your work.   Based on the above diagram:   1. Calculate MPC?   2. If Private Investment increases by 100, calculate the new level of NI.   3. If full-employment NI is at 3000, by how much should Government spending change?   4. What is the new NI, If 1/2 of those government expenditures are financed through taxes?

9. If the MPC is greater than zero but less than one, then we can be sure that when disposable income rises by P1 consumption will:  a. not be affected b. will rise by more than P1 c. will rise by less than P1 d. will rise by exactly P1.

If MPC =2/3, actual GDP = $14,000 and potential GDP = $13,100, there is a __________(recessionary / inflationary) gap of $_____ and a _________ (decrease / increase) in personal taxes of$______ would eliminate the gap.

An increase of R5 billion in income in a macroeconomy leads to an increase in R3billion in consumption spending. From this information, we can determine that themarginal propensity to save in this economy is:choose the correct answer(a) 0.6; (b) 0.5;(c) 0.3; (d) 0.4

Consider an economy that is operating atthe full-employment level of real GDP.Assuming the MPC is 0.90, predict the effect onthe economy of a $50 billion increase in governmentspending balanced by a $50 billionincrease in taxes.

a)What will the multiplier be given the MPS values below? Fill in the table with your answers.  Instructions: round your answers to 2 decimal places.                               MPS                     Multiplier                 0.0                                     0.4                   0.5                  1.0   b) What will the multiplier be given the MPC values below? Fill in the table with your anwers.                                MPC                    Multiplier                                 1.0                                  0.9                                0.75                                0.5                                0   c) How much of a change in GDP will result if firms increase their level of investment by $ 8 billion and the MPC is 0.80? ( Enter your answers as whole numbers) How much of a change in GDP will result if firms incresese their level of investment by $ 8 billion and the MPC instead is 0.67?