If autonomous consumption is 400 and the multiplier is 4, the saving function isequal to *S= 400 +4YdS= -400 + 0.75YdS= 400 +0.1YdS= -400+0.25Y.Suppose disposable income increases from $7 trillion to $8 trillion. At the sametime, consumption expenditure increases from $6.8 trillion toThus theMPC must equal$7.8 trillion; 0.60$7.6 trillion; 0.80$7.4 trillion; 0.40$8 trillion; 1.00

Answered: If autonomous consumption is 400 and…

If autonomous consumption is 400 and the multiplier is 4, the saving function is equal to * O S= 400 +4Yd O S= -400 + 0.75Yd S= 400 +0.1Yd S= -400+0.25Yd

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 5SQP

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Question

If autonomous consumption is 400 and the multiplier is 4, the saving function is
equal to *
S= 400 +4Yd
S= -400 + 0.75Yd
S= 400 +0.1Yd
S= -400+0.25Y.
Suppose disposable income increases from $7 trillion to $8 trillion. At the same
time, consumption expenditure increases from $6.8 trillion to
Thus the
MPC must equal
$7.8 trillion; 0.60
$7.6 trillion; 0.80
$7.4 trillion; 0.40
$8 trillion; 1.00

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