Consider a Keynesian model: Full employment output = R100 million Tax rate = 0,25 Investment = R40 million Autonomous consumption =R30 million Marginal propensity to consume = 0,8 3.28 The value of the multiplier is... *** [1] 2 [2] 1.67 [3] 2.5 [4] 4 3.29 The equilibrium level of income is ... [1] R70 million. [2] R175 million. [3] R280 million. [4] R140 million. 3.30 To bring about full employment, government spending should be [1] -R30 million. (2] -R72 million. [3] R30 million. (4) R75 million.
Consider a Keynesian model: Full employment output = R100 million Tax rate = 0,25 Investment = R40 million Autonomous consumption =R30 million Marginal propensity to consume = 0,8 3.28 The value of the multiplier is... *** [1] 2 [2] 1.67 [3] 2.5 [4] 4 3.29 The equilibrium level of income is ... [1] R70 million. [2] R175 million. [3] R280 million. [4] R140 million. 3.30 To bring about full employment, government spending should be [1] -R30 million. (2] -R72 million. [3] R30 million. (4) R75 million.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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