Consumption function for a country; Let C = 100 + 0.75Y. Planned investments 1 = 200. In this case a) Find the equilibrium national income. b) Find the multiplier coefficient and interpret the meaning it expresses. c) Find the equilibrium consumption amount. d) Find the equilibrium saving amount. e) How much does the equilibrium national income change if i = 100? f) If C = 0.85, how would the equilibrium national income change? Explain. g) If C = 0.85, how would the equilibrium saving amount change? Explain
Consumption function for a country; Let C = 100 + 0.75Y. Planned investments 1 = 200. In this case a) Find the equilibrium national income. b) Find the multiplier coefficient and interpret the meaning it expresses. c) Find the equilibrium consumption amount. d) Find the equilibrium saving amount. e) How much does the equilibrium national income change if i = 100? f) If C = 0.85, how would the equilibrium national income change? Explain. g) If C = 0.85, how would the equilibrium saving amount change? Explain
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
Problem 5TY
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Consumption function for a country; Let C = 100 + 0.75Y. Planned investments 1 = 200. In this case
a) Find the equilibrium national income .
b) Find the multiplier coefficient and interpret the meaning it expresses.
c) Find the equilibrium consumption amount.
d) Find the equilibrium saving amount.
e) How much does the equilibrium national income change if i = 100?
f) If C = 0.85, how would the equilibrium national income change? Explain.
g) If C = 0.85, how would the equilibrium saving amount change? Explain
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