In a private closed economy (a) the marginal propensity to save is 0.2, (b) consumption equals income when consumption is $120 billion, and (c) the level of investment is $40 billion. What is the equilibrium level of income? Multiple Choice $320 billion $280 billion

________ Is that type of investment which is not affected by change in the level of output or income

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Assume an economy with 1000 consumers. Each consumer has income in the current period of 50 units and future income of 60 units, and pays a lump-sum tax of 10 in the current period and 20 in the future period. The market real interest rate is 8%. Of the 1000 consumers, 500 consume 60 units in the future, while 500 consume 20 units in the future. a) Determine each consumer's current consumption and current saving. b) Determine aggregate private saving, aggregate consumption in each period, government spending in the current and future periods, the current-period government deficit, of the quantity of debt issued by the government in the current period. c) Suppose that current taxes increase to 15 for each consumer. Repeat parts (a) and (b) and explain your results.

Which of the following would likely increase private saving?   a. both expansion of means testing and a consumption tax     b. expansion of means testing, but not a consumption tax     c. a consumption tax, but not expansion of means testing     d. neither expansion of means testing nor a consumption tax

Describe the investment decisions made in the private sector?

Income choices: a. What will a 2% increase in tax rates do to disposable income? b. If Eduardo’s disposable income increases from $1,200 to $1,700 and his level of saving increases from minus $100 to a plus $100, his marginal propensity to save is:

a. If national saving of a closed economy equals$100,000, net taxes equal$125,000,GDPdeflator is 175 and government expenditure equals$45,000, what is private saving?

For a closed economy, GDP is $18 trillion, consumption is $13 trillion, taxes are $2 trillion and the government runs a deficit of $1 trillion. What are private saving and national saving?

A closed economy has income of $1000, government spending of $200, taxes of $150, and investment of $250. What is private saving?