Given that: The government expenditure G = 40, the investment I = 60 the consumption C=(0.75)Ya+10, the taxation=(0.2)Y+40 Where Y is the national income, Y is the disposable income. The equilibrium level of consumption (a) 344 (b)222 (c) 322 (d) 100

What is the effect on savings of a tax cut of $15 billion? Is this inflationary or deflationary? Assume that the MPC is 0.9.

With an MPC of 90, what would you expect to be the total impact on spending/incomes from the construction of a $4 million facility in a city? choose correct one- 1)$8 million 2)$40 million 3)$ 50 million 4)$10 million

Problem 10-08 (Algo) If Mexican exports to Canada decline by $14 billion, by how much will Mexico's aggregate spending drop if its MPC is 0.80? Instructions: Enter your response as a whole number. billion

Please help

Suppose there is a simultaneous increase in government spending (fiscal policy) and autonomous consumption, what would happen to consumption C. tax generation T and national income Y? C+ BT-bY = Co T-tY To -C+Y = Io + Go (National Income Equation) (Consumption Function) (Income-Dependent Tax)

Prove that the multiplier is equal to 1/(1-mpc)

The equilibrium level of output for an economy is given as R2420m, with autonomous spending of R968m. If autonomous spending increases by R232m, the new equilibrium level of output will be __________ and the multiplier is _____.  (a)  R3000m; 2.5;  (b)  R928m; 4;  (c)  R580m; 2.5;  (d)  R3000m; 4.

The MPC is 0.41  If change in consumption is $650 find the change in income

In an economy MPC equals to 0.85 if investment is increased by $20 how more would be the increase in income