ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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If disposable income is $900 billion when the average propensity to consume is 0.6, it can be concluded that saving is
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$360 billion.
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$540 billion.
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$900 billion.
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$400 billion.
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- Suppose GDP = $10,000, autonomous consumption is $600 and planned investment spending is $350, the marginal propensity to save is 0.75, and there is no Government and no foreign sector. What is the equation of the Planned Aggregate Expenditure (AE) function? AE=0.20Y + 300 AE=0.80Y + 500 AE=0.80Y + 900 AE=0.25Y + 950arrow_forwardIn an economy the marginal propensity to consume is 0.9 and increase in investment is of 100 million dollars. Find out the increase in national income.arrow_forwardIn a closed economy with no government, aggregate expenditure is saving plus investment. consumption plus investment. consumption plus the MPC. O MPC + MPS.arrow_forward
- Suppose that equilibrium output in a closed economy is 1,680, consumption 1,260 and investment is 120. The marginal tax rate is zero. The marginal propensity to consume out of national income is 0.75. The level of government expenditure (G) is 1260 120 300arrow_forwardIf the multiplier in an economy is 5, a $20 billion increase in net exports will. make sure the answer is accurate.Group of answer choices decrease GDP by $100 billion. increase GDP by $20 billion. increase GDP by $100 billion. reduce GDP by $4 billion.arrow_forwardSuppose the MPC in an economy is 0.55. The APC is initially 0.65 and disposable income is $2 billion. If disposable income increases to $16 billion, what is the new level of saving? $5.6 billion $0.7 billion $7.2 billion $7.0 billionarrow_forward
- Suppose that the marginal propensity to save is dS = 0.29 dy (in billions of dollars) and that consumption is $8.9 billion when disposable income is $0. Find the national consumption function. C(y) =arrow_forwardSee the attached and help with the solution pleasearrow_forwardSuppose output and income is equal to 16100, the marginal propensity to consume is 0.65, and autonomous consumption is 675. Calculate total saving for this economy, assuming no public or foreign sector. (Round your answer to the nearest whole number.)arrow_forward
- Macroeconomics: Assuming marginal propensity to consume is 0.5. If there is a shock to the economy that increases investment spending by 200 billion dollars what will the total Change to GDP be? (Ignore taxes and imports)arrow_forwardGiven a consumption function, C = c0 + cY, specified such that the marginal propensity to consume is 75%, what will consumption expenditure be if total income is £538bn? a. £584+ c0 bn b. £403.5 + c0 bnc. £538 + c bnd. £403.5 bnarrow_forwardQuestion 1 Given the following consumption function: C= 100 + 0.6Y 1. What is the saving equation? 2. Determine the Breakeven for the economy.arrow_forward
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