The national income model for an economy is represented as follows (units are in Ksh.M) Y = C + I + G + X – M I = 320 + 0.20Y G = 980 C = 540 + 0.80Y M = 640 + 0.25Y X = 850 Y = National income; C = Consumption; I = Investment; G = government spending; X = Exports; and M = Imports. Determine the following. TRUE or FALSE: This model has three endogenous variables Answer 1 Choose... TRUE or FALSE: The country’s marginal propensity to save is 20%. Answer 2 Choose... Autonomous level of imports Answer 3 Choose...

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A: Let the National Income model be  Y = C + I0 + G0C = α +β(Y -T)           α&gt;0; 0&lt;β&lt;1T = γ…

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A:

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Q: R4

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Q: urables goods account.

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Q: Y = C + / + G.

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Q: Consider the following national income model : Y = C + I + Go C = 224 + 0.55Y 3.1I = 184 + 0.22Y…

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A: (D)

Imports and Tariff Analysis

Tariff - Tax on imports imposed by the customs authority coming from a country & exports leaving a country borne by the end consumer.