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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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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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
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
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