If the consumption function is of the form C = 80 + 0.4Yd, the MPS equals Select one: A. -0.6. B. -0.4. C. 0.4. D. 0.6.   Given an MPC equal to 0.9, a decrease in business investment expenditures by RM25 billion translates into Select one: A. an increase of agregate output by RM250 billion B. a decrease of aggregate output by RM25 billion C. an increase of aggregate output by RM250 billion D. a decrease of aggregate output by RM250 billion   When income is equal to zero, consumption is equal to Select one: A. induced consumption B. aggregate consumption C. autonomous consumption D. endogeneous consumption

Q: Consider two economies (1 and 2) where in equilibrium, the level of aggregate income (Y) is the sum…

A: Aggregate income is the sum total of all the incomes in an economy without adjustments.  As given in…

Q: Given the consumption function C=$500bil + 0.8Y, an increase in disposable income from $6,000…

A: When the disposable income is $6,000 Billion, the consumption will be; Thus, C is equal to $5,300…

Q: If consumption is $9 billion when disposable income is $0, and if the marginal propensity to save is…

A: According to the question given that the the level of autonomous consumption $9 billion and marginal…

Q: 3) If national disposable income increases by $20 million and consumption increases by $15 million,…

A: Marginal propensity to consume (MPC) is the change in the consumption due to change in income by $1.…

Q: Suppose that autonomous consumption is 2,190, government purchases are 590, taxes are 0, planned…

A: An autonomous spending depicts the parts of an economy's total use that are not influenced by that…

Q: Given that MPS = 0.5, what is the increase in real GDP from a $100 bllion rise in invetment? $100…

A: As per question, MPS=0.5. Let increase in real GDP be represented by ∆Y. "Increase in investment is…

Q: Suppose that the marginal propensity to save is ds = 0.20 (in billions of dollars) dy and that…

A: The consumption(C) function represents the correlation between disposable income(y) and consumer…

Q: Assume: Y= C + I + G + NX        C   = 400 + (0.8)YD       Io   = 200           G    = 300 +…

A: This change, net exports decrease as national income increases i.e. from -40 to -40-mY. This…

Q: The consumption function shows a positive relationship between an individual's stock of wealth and…

A: Disposable income is income minus net taxes.  i.e., Disposable income = Income - Net taxes…

Q: a. Compute the MPS and the MPC b. Consider the consumption equation C=a=b.Y. Compute a and b. C. At…

A: When the income is zero, the savings is -50. And when the income is 1000, savings is 0.

Q: If investment increases by Rs200 and, in response, equilibrium expenditure increases by Rs800 a. The…

A: An economy is alleged to be at equilibrium once mixture expenditure is capable the mixture provide…

Q: A country is closed. It has no government sector, and its aggregate price levels and interest rates…

A: The equation Y = C + I + G + NX tells us that aggregate output (or aggregate income) is equal to…

Q: Given the consumption function C = $350 billion + 0.65Y, an increase in disposable income from…

A: The consumption function is a concept in economics that describes the relationship between household…

Q: If consumption is $3 billion when disposable income is $0, and if the marginal propensity to save is…

A: Consumption is a formula in economics that addresses the practical connection between all-out…

Q: The change in output following a change in autonomous expenditure is known as the: (a)  Investment…

A: The term multiplier refers to the effect by which an increase in autonomous expenditure leads to an…

Q: If the MPC is 0.95, then a $10 million increase in disposable income will Increase consumption by…

A: Marginal propensity to consume (MPC) measures the change in consumption due to a change in…

Q: If the consumption function is of the form [C=80 + 0.4Y], the MPS equals Select one: a. 0.6. b.…

A: Income is the amount that an individual or households earn from working or proving their factor…

Q: Suppose that the marginal propensity to save is   dS dy = 0.21     (in billions of dollars) and…

A: Consumption function, in financial aspects, the connection between consumer spending(s) and the…

Q: A4. In the Keynesian cross model, if the interest rate is constant and the MPC is 0.3, then the…

A: the formula to calculate government multiplier is given below: Government Multiplier (GM) = 1 / (1-…

Q: billion. In the second billion. Therefore, a lower MPC In the first economy (with MPC-0.5), the $30…

A: Multiplier: Multiplier tells if the autonomous expenditure increased by 1 unit, then by how many…

Q: Assume that total expenditure E comprises the sum of government consumption, G, household…

A: The objective of the question is to find the correct equation for household saving (SH) in a closed…

Q: Suppose the Consumption function for a particular economic system is: C = 150,000 + .95Y 1. What is…

A: Income of the people split into two saving and consumption , so here we calculate the answer as…

Q: Suppose the MPC in an economy is 0.55. The APC is initially 0.65 and disposable income is $2…

A: MPC full form is Marginal Propensity to Consume, and disposable income implies the income that…

Q: Suppose that the marginal propensity to save is ds = 0.29 dy (in billions of dollars) and that…

A: Given: dSdy=0.29To find the national consumption function:dCdy=1-dSdy

Q: Assume aggregate consumer spending equals $1,500 when aggregate disposable income is zero, and when…

A: The aggregate consumption function is given below C=c0+c1YD C = 1500, when Yd = 0 if Yd increase to…

Q: Aggregate Expenditures and Multipliers Assignment a. Using the aggregate expenditure function…

A: Answer: (a). The current level of real GDP is that where the 45-degree line and the aggregate…

Q: Given: C = 1080 +.6Y T= 100 + .25Y TR = 0 1) Find the equation for YDISP 2) Find levels of…

A: Given, C = 1080 + 0.6Y T = 100 + 0.25Y TR = 0 ................. 1. Answer The equation for…