Planned expenditure function question with lump-sum tax Do all parts to the question (show your work) Assume in Fantasticland, MPC = 0.75, and autonomous consumption = $6000. Planned investment = $2000, and planned government purchases = $5000. All Planned I and G are autonomous expenditures. Taxes ( T) is = $1000, and net exports = zero. a. Write out the consumption function b. What is induced consumption in this model? c. Write out the planned expenditure function (show your work)

Planned expenditure function question with lump-sum tax Do all parts to the question (show your work) Assume in Fantasticland, MPC = 0.75, and autonomous consumption = $6000. Planned investment = $2000, and planned government purchases = $5000. All Planned I and G are autonomous expenditures. Taxes ( T) is = $1000, and net exports = zero. a. Write out the consumption function b. What is induced consumption in this model? c. Write out the planned expenditure function (show your work)

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter8: The Keynesian Model

Section: Chapter Questions

Problem 9SQP

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D,E,F,G
Please answer d, e and f. Professor. Thanks you.
Please answer g, h, I and j please. Please do an extra one please. Thanks you so much for understanding. ?
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f and J
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Please answer d, e, and f. Thanks you so much
G,H,i,J
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If, Autonomous Private Final Consumption Expenditure = $ 13,500, Exports = $ 5000 Government Final Consumption Expenditure = $ 6800 Government Investment Expenditure = $ 8900 Marginal Propensity to Import = 0.1, Marginal Propensity to Save = 0.25, Tax rate = 20% If Government increases its Investment Expenditure by $ 12,000, what is Marginal Propensity to Consume?