Autonomous consumption = R100m Investment spending = R300m Government spending = R200 million Exports = R150 million Autonomous imports = R100 million Marginal propensity to consume =2/3 Tax rate = 1/10 Marginal propensity to import = 1/10 Yf = R2 150 million. Calculate the size of the multiplier.

Autonomous consumption = R100m Investment spending = R300m Government spending = R200 million Exports = R150 million Autonomous imports = R100 million Marginal propensity to consume =2/3 Tax rate = 1/10 Marginal propensity to import = 1/10 Yf = R2 150 million. Calculate the size of the multiplier.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 5SQP

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Autonomous consumption = R100m Investment spending = R300m Government spending = R200 million Exports = R150 million
Autonomous imports = R100 million Marginal propensity to consume =2/3 Tax rate = 1/10
Marginal propensity to import = 1/10 Yf = R2 150 million.

Calculate the size of the multiplier.
Calculate the equilibrium level of income.

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