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- C= 500 + 0,8Y, tax rate(t)= 0,25, G=1000 ve I= 1200. X= 500, M= 500 + 0,1Y. Calculate the multiplier for I(investment).If the consumption is 450 and the investment is 240 find the aggregate demandEquation for consumption is C=40/(0.8Y) where Y= yearly income = $400. A) what is the level of consumption B) what is the average propensity to consume
- Calculate the value of Consumption when average propensity to consume is 0.7 and the income is 700 (b) Can the value of APC greater than 1The saving function is given as:- S = -25 +0.25Y Calculate the equilibrium level of income in the economy if it is given that the planned investment is $200 million.Assume that that tax revenues (T) are proportional to income (Y). That means if the tax rate is equal to t, then we have T = tY.Also, consumption (C) and investment (I) functions are given as the following: C = a + b (Y – T) [where a and b are constant]I = c – dr. [where c and d are constant, and r is the interest rate] A) Find the expression of the government purchase multiplier. (Use derivative) B) What will happen to multiplier if tax rate increases? What will happen to multiplier if MPC increases?
- Y-2VT-8 VY+2 Suppose the savings function of a country is S = and savings (S) are measured in ringgit Malaysia (RM). Find the country's Marginal Propensity to Save (MPS) when the national income is RM150 billion. where the national income (Y)Prove that the multiplier is equal to 1/(1-mpc)(a) Find equilibrium income when investment demand is 400 and C = 0.8Y. (b) Would output be higher or lower if the consumption function were C = 100 + 0.7Y?