Ca= 1,500-10r c=0.6 T=1,800 Ip=2,400- 50r G=2,000 NX= -200
a) I have to calculate marginal propensity to save
b) compute the amount of autonomous planned spending, Ap, given interest rate =3
c) compute the equilibrium level of income, given that the interest rate =3
d) suppose the autonomous consumption changes by 4 percent of any change in household wealth and that the decline in the housing market in 2006-09 and drop in stock market from 2007-09 reduces household wealth by $trillion. Compute the decrease in autonomous consumption that results from the decline in household wealth.
e) calculate the new amount of autonomous planned spending, Ap, and the new equilibrium level of income, given that the interest rate equals 3.
F) Using answers from c-e, compute the value of the value of the multiplier.