Your consumption C is related to your disposable income by the equation, C = 200 + 3/5 Yd. Assume that tax = 0 a) What will be the amount of consumption at an income level of 200? b) What is the value of MPC? MPS? c) If I = 100, what is the equilibrium level of income?
Your consumption C is related to your disposable income by the equation, C = 200 + 3/5 Yd. Assume that tax = 0 a) What will be the amount of consumption at an income level of 200? b) What is the value of MPC? MPS? c) If I = 100, what is the equilibrium level of income?
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 7SQ
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Your consumption C is related to your disposable income by the equation, C = 200 + 3/5 Yd. Assume that tax = 0
a) What will be the amount of consumption at an income level of 200?
b) What is the value of MPC? MPS?
c) If I = 100, what is the equilibrium level of income?
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