a) Based on the information given on a hypothetical economy, answer the following questions. Saving function ( S) = -150 + 0.25Yd Investment (I) = 100 Government Expenditure (G) = 200 Taxes (T) = 100 iv) Find the value of investment multiplier v) What is value of autonomous consumption vi) Sketch the diagram to show your answer in (b)
a) Based on the information given on a hypothetical economy, answer the following questions. Saving function ( S) = -150 + 0.25Yd Investment (I) = 100 Government Expenditure (G) = 200 Taxes (T) = 100 iv) Find the value of investment multiplier v) What is value of autonomous consumption vi) Sketch the diagram to show your answer in (b)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
YOU ARE REQUIRED TO SHOW A CALCULATION METHOD
QUESTION 1
a)
Based on the information given on a hypothetical economy, answer the following
questions.
Saving function ( S)
=
-150 + 0.25Yd
Investment (I)
=
100
Government Expenditure (G) =
200
Taxes (T)
=
100
iv)
Find the value of investment multiplier
v)
What is value of autonomous consumption
vi)
Sketch the diagram to show your answer in (b)
Note: no need hand writing
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