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In a basic keynesian macroeconomic model it is assumed that

Question: In a basic Keynesian macroeconomic model it is assumed that Y = C + I where I = 820 and C = 60 + 0.8Y.

(a) What is the marginal propensity to consume?

(b) What is the equilibrium level of Y?

(d) What increase in I is required to increase Y to 5,000?

(e) If this increase takes place will savings (Y - C) still equal I?

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Finance Basics: In a basic keynesian macroeconomic model it is assumed that

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Finance Basics: In a basic keynesian macroeconomic model it is assumed that

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