1 graph the consumption and savings functionsc 100 06y, Ask an Expert

Economics

1. Graph the consumption and savings functions:

C = 100 + 0.6Y and S = -100 + 0.4Y

a) What is the equilibrium level of national income?

b) If autonomous investments of 150 occurred, graph the new C + I function of AD = 250 + 0.6Y.

c) What is the new equilibrium level of national income?

d) What is the value of the investment multiplier?

2. Suppose that in an economy a $40m increase in consumption leads a $200m increase in national income. Calculate the value of this economy's marginal propensity of save. (Show working).

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9743504

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question - suppose a company borrows 10 million for a year

Question - Suppose a company borrows $10 million for a year at an interest rate of 6 percent annually, with all interest and principal to be paid at the end of the year How much money will the company give the lender at ...

Question choose and focus on one negative consequence of

Question: Choose and focus on one negative consequence of globalization. Explain what the issue is, and why it is problematic for the world. Describe what you think should be done to improve this situation. If you think ...

Question would you agree or disagree with the following

Question: Would you agree or disagree with the following statement, "The single most important health policy choice in the United States over the past four decades has nothing to do with the Department of Health and Huma ...

Question you are on the board of directors of a private

Question: You are on the board of directors of a private high school, which is hiring new tenth-grade science teachers. As you think about hiring someone for a job, what are some mechanisms you might use to overcome the ...

Question andrew has 12000 that he will invest to have a

Question: Andrew has $12,000 that he will invest to have a down payment in 24 years for a vacation home. Assuming he can earn 8% on his investment how much would he have at the end of 24 years? The response must be typed ...

Question an investor buys a coupon bond and holds it for

Question: An investor buys a coupon bond and holds it for exactly one year and then sells it in a secondary market prior to maturity. The investor buys it for $4,000, sells it one year later for $4,300 and receives a cou ...

Question country n a relatively small impoverished country

Question: Country N, a relatively small, impoverished country, discovers a huge reservoir of crude oil, for which the costs of lifting are less than 10% of the market price. Explain what happens to (a) the growth rate, ( ...

Question in your opinion how would you summarize interest

Question: In your opinion, how would you summarize interest rates and decision making in plain English to someone who is considering making a car or house purchase? How would you advise them to structure borrowing money ...

Question suppose the state of iowa passes a law that

Question: Suppose the state of Iowa passes a law that increases the price of cigarettes by $1 per pack. As a result, residents in Iowa start purchasing their cigarettes in surrounding states. Which of the following princ ...

Suppose that a worker in grainland can grow either 40

Suppose that a worker in Grainland can grow either 40 bushels of corn or 20 bushels of oats per year, and a worker in Farmfields can grow either 20 bushels of corn or 50 bushels of oats per year. There are 200 workers in ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert