2.8 Consider the following model Y = C+I+G C =a-bT +b(1-k)Y G=G D=G-T-KY An increase in the marginal propensity to consume would A. shift/rotate the C+1+G line downwards B. shift the C+I÷G line upwards with no change in private investment C. shift the C+I+G line upwards and increases private investment due to increase in output D. shift the C+I÷G line upwards but the effect on private consumption is ambiguous E. None of the above

2.8 Consider the following model Y = C+I+G C =a-bT +b(1-k)Y G=G D=G-T-KY An increase in the marginal propensity to consume would A. shift/rotate the C+1+G line downwards B. shift the C+I÷G line upwards with no change in private investment C. shift the C+I+G line upwards and increases private investment due to increase in output D. shift the C+I÷G line upwards but the effect on private consumption is ambiguous E. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that Maria spends 84,500 on consumption, her disposable income is $90,000 and her Marginal Propensity to Save is .15. What does Maria's autonomous consumption equal? Select one: a. $5,500 b. $6,500 c. $7,000 d. $8,000
According to ihe Bureau of Ecnnomic Analysis, during the recession of 2007–2009, household saving as a fraction of disposable personal income increased from a low of just over I percent in ihe first quarter of 2008 to 5 percent in the second quarter of 2009. All else equal, what impact would this change in saving have on the MPC, MPS, and multiplier? How would ihis change affect equilibrium output when planned investment changes?
1) Following is information for the economy of Donut. All units are million dollars. Their autonomous consumption is $500, and the marginal propensity to consume is 0.6. Investment spending is constant at $300, and government expenditure is constant at $200. Exports are constant at $100 and imports are constant at $230. Net taxes are constant at $100. Calculate and state your answers for the following questions. A.. What is the value of private saving in this economy when the real GDP is $500? B..What is the value of autonomous aggregate expenditure i.e. AE0? C..What is the size of the multiplier in this economy? D... What is the value of aggregate planned expenditure when real GDP is $1000?
Aggregate Expenditures and Multipliers Assignment a. Using the aggregate expenditure function above, what is the current level of real GDP? b. Using the aggregate expenditure function above, what would be the level of real GDP if the aggregate expenditure function shifted up by $0.2T? c. If Investment expenditures increase by $300B and MPC is equal to 0.90, what will be the increase in real GDP? d. If Government expenditures increase by $800B and MPS is equal to 0.05, what will be the increase in real GDP?
Please help! Thank you very much for your time. If your disposable income increases from $12,000 to $17,000 and your consumption increases from $10,000 to $14,500, your MPC is_____ A. 0.2. B. 0.4. C. 0.6. D. 0.9.
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3. If consumer spending increased by $25 billion, resulting as an equilibrium output increasing by $75 billion. What is the value of the MPC?
Given that C = 1000 + 0.8 Y and I = $200 %3D Use the injection and leakage approach to find out the equilibrium income What is the value of the investment multiplier? Find out the amount of saving and consumption respectively. a. b. C. ntion i ncreas es by 00 how will
Consider an economy described by the following equations: C = a + b(Y – T) | = cY – di + e Md = fY – gi P || - G = G Ms = M P P = 1 1. Derive an expression for the IS-curve and explain what does this equation represent. 2. Derive an expression for the LM-curve and explain what does this equation represent. 3:Compute the level of private saving when both the goods and the fnancial market are in equilibrium. Symbols have their usual meanings. Please provide mathematical proof.
Refer to the table. Planned Planned Consumption Saving Planned Real GDP Investment $6,000 $1,000 $1,000 $5,000 10,000 0 10,000 14,000 1,000 15,000 18,000 2,000 20,000 22,000 25,000 26,000 30,000 If real Gross Domestic Product (GDP) equals $25,000, what is the average propensity to save? OA. 0.0 OB. 0.88 OC. 0.12 OD. 0.56
Fill in the aggregate saving column in the following table. (Include a minus sign if necessary.) Aggregate Income, Y $0 100 200 300 400 500 600 Aggregate Consumption, C $200 250 300 350 400 450 500 The value of the MPC is one decimal place.) T Aggregate Saving, S $-200 150 100 50 0 50 100 (Round your response to CXIE DE Aggregate consumption, C Aggregate saving, S 700- 600- 500- 400 300- 200 100- 0 -100- -200- 300- -400- 100 200 300 400 500 Aggregate income, Y 600