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Assume that in 2015, the following prevails in the Republic of Nurd: Government spending (G) = $0 Net taxes (T) = $0 Planned investment (I) = $30 Income (Y) = $200 Assume that households of Nurd consume 80 percent of their income; they save 20 percent of their income. In other words, MPC = 0.80 and MPS = 0.20. Thus, the consumption function and saving function are: C = 0.80Y, and S = 0.20Y, where disposable income Y. = Y-T At the current level income (Y = $200). O A. leakages (S+ T) fall short of injections (I + G) and income will increase in the coming months. O B. leakages (S + T) equal injections (I + G) and income will remain unchanged in the coming months. OC. leakages (S + T) exceed injections (I + G) and income will increase in the coming months. O D. leakages (S + T) exceed injections (I+ G) and income will fall in the coming months.

Assume that in 2015, the following prevails in the Republic of Nurd: Government spending (G) = $0 Net taxes (T) = $0 Planned investment (I) = $30 Income (Y) = $200 Assume that households of Nurd consume 80 percent of their income; they save 20 percent of their income. In other words, MPC = 0.80 and MPS = 0.20. Thus, the consumption function and saving function are: C = 0.80Y, and S = 0.20Y, where disposable income Y. = Y-T At the current level income (Y = $200). O A. leakages (S+ T) fall short of injections (I + G) and income will increase in the coming months. O B. leakages (S + T) equal injections (I + G) and income will remain unchanged in the coming months. OC. leakages (S + T) exceed injections (I + G) and income will increase in the coming months. O D. leakages (S + T) exceed injections (I+ G) and income will fall in the coming months.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Assume that in 2015, the following prevails in the Republic of Nurd: Government spending (G) = $0 Net taxes (T) = $0 Planned investment (I) = $30 Income (Y) = $200 Assume that households of Nurd consume 80 percent of their income; they save 20 percent of their income. In other words, MPC = 0.80 and MPS = 0.20. Thus, the consumption function and saving function are: C = 0.80Y, and S = 0.20Yg, where disposable income Y = Y-T At the current level of income (Y = $200), O A. leakages (S+ T) fall short of injections (I + G) and income will increase in the coming months. O B. leakages (S + T) equal injections (I + G) and income will remain unchanged in the coming months. O C. leakages (S + T) exceed injections (I + G) and income will increase in the coming months. O D. leakages (S+ T) exceed injections (I + G) and income will fall in the coming months Click to select your answer. Casper PA Sc SysRa Del Home Pouse F9 F10 F12 F8 F5 F3 esc %3D Backspace Num LK 5 /2 & 6 7 { 8 Scroll 3 # 4 $ 1 Ğ Ü Enter 7 Y U Home Q @ E € W H J K L A S
Transcribed Image Text:Assume that in 2015, the following prevails in the Republic of Nurd: Government spending (G) = $0 Net taxes (T) = $0 Planned investment (I) = $30 Income (Y) = $200 Assume that households of Nurd consume 80 percent of their income; they save 20 percent of their income. In other words, MPC = 0.80 and MPS = 0.20. Thus, the consumption function and saving function are: C = 0.80Y, and S = 0.20Yg, where disposable income Y = Y-T At the current level of income (Y = $200), O A. leakages (S+ T) fall short of injections (I + G) and income will increase in the coming months. O B. leakages (S + T) equal injections (I + G) and income will remain unchanged in the coming months. O C. leakages (S + T) exceed injections (I + G) and income will increase in the coming months. O D. leakages (S+ T) exceed injections (I + G) and income will fall in the coming months Click to select your answer. Casper PA Sc SysRa Del Home Pouse F9 F10 F12 F8 F5 F3 esc %3D Backspace Num LK 5 /2 & 6 7 { 8 Scroll 3 # 4 $ 1 Ğ Ü Enter 7 Y U Home Q @ E € W H J K L A S
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