Suppose the level of autonomous investment in an economy is 200 and the consumption function is given by C=80+0.75Y. Find the equilibrium level of income What will be the increase in national income if investment is increased by 25.

MPC in an economy is 0.8. If investment is increased by $5 million, how much would be increas in income.

Calculate the value of consumption expenditure from the following:- National income = $6000 Autonomous consumption = $1000 Marginal propensity to consume = 0.80

If in an economy the consumption level is given as $110 while the disposable income is $220 find  the APC

If the MPC is 0.8 and the investment in a country increases by $900 billion calculate the total increase in income?

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Consider a closed economy with a gross domestic product (Y) of 800, consumption expenditure (C) of 500, government expenditure (G) of 100 and tax revenues (T) of 190. The figures are in billions of dollars. Suppose the investment expenditure function is I = 300 – 50r, where r is the real interest rate expressed as a percentage. a) State the equation between Y and the three components of expenditure. b) Calculate private saving (Sp), public saving (Sg), and national saving (S). c) Calculate investment (I). d) Calculate the equilibrium real interest rate and quantity of loanable funds. e) If the government ran a budget deficit of $30 billion in the next period, explain how this would affect the market for loanable funds.

Calculate MPC when a change in investment spending of 40 million leads to an increase in real GDP by 160 million.

Q.30. C = 100 + 0.4 Y is the Consumption Function of an economy where C is Consumption Expenditure and Y is National Income. Investment expenditure föfeign exchange etc. financing, is 1100. Calculate: () Equilibrium level of National Income.