assume the following economy autonomous consumption =£3m marginal propensity to consume= 0.8 business investment = 52 government spending =£127m income tax rate = 40%   A. Find equilibrium size of income Y. B. Identify whether the government runs a budget deficit or a budget surplus

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A: The marginal propensity to consume refers to that portion of the increased income that was spent by…

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Q: The partial data in the table below are for the economy of Arinaka. Planned investment, government…

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Q: Consider an economy with the following situation: C = 50 +0.8 YdI =100;T = 100 G =150 a. Solve for…

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Q: True False and a 1 sentence explaination please thanks.   D) If we assume marginal propensity to…

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A:

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Q: please give me correct answer of all parts and explain otherwise give Downvote

A: Here is my response: a. MPC (Marginal Propensity to Consume) From the graph, we cannot determine the…

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Q: partial data in the table below are for the economy of Arinaka. Planned investment, government…

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Q: crowding out

A: Crowding out is a situation when increased interest rate leads to reduction in private investment…

Q: Question 13 Which of the following is an effect of an increase in government spending in the medium…

A: Government spending will be in form  of tax rebate , infrastructural development, providing…