Solved: What is the value of the marginal propensity to save in, Microeconomics

+44 141 628 6080
[email protected]

What is the value of the marginal propensity to save in

Consider a consumption function given by the following equation:

C = 1000 + 0.5Y_D

a) What is the value of the marginal propensity to consume?

b) Assume that investment and government spending are exogenous. What is the value of the multiplier in this economy and how do you calculate this value based on the consumption function above?

c) What is the value of the marginal propensity to save in this economy? Explain your answer.

d) What are the values of i) autonomous consumption and ii) autonomous savings in this model? Explain your answer.

View Complete Question

Solution Preview :

Prepared by a verified Expert

Microeconomics: What is the value of the marginal propensity to save in

Reference No:- TGS01129033

Now Priced at $25 (50% Discount)

Recommended (91%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Identify a true statement about validity

Question: Identify a true statement about validity as applied to a test. Multiple choice question

Discuss three ethical guidelines that are important

Identify and discuss three ethical guidelines that are important to consider when designing an 8-week group for adolescents who are referred

Identify one antecedent, one behaviour, and one consequence

Sahir is the most active student in your kindergarten class. He tends to be very disruptive when the teacher you work with is teaching the class,

How teenagers in an impoverished urban area spend their time

The purpose is to examine the psychological factors affecting how teenagers in an impoverished urban area spend their time outside of school using:

Identify a specific theory of cognitive or moral development

Problem 1: Identify a specific theory of cognitive or moral development, and summarize the major assumptions.

How ensure that the youth understand what study involves

What is another way to say ". It is important to ensure that the youth understand what the study involves, what their participation entails

Is early food experiences can impact development

Early food experiences can impact development over several learning domains, including Social and Emotional Development, Language

Solution Preview :

Prepared by a verified Expert

Microeconomics: What is the value of the marginal propensity to save in

Reference No:- TGS01129033

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : What share of country ds population must be employed -

Q : Using the textbooks the university library or other

Q : North dakota corporation began operations in january 2010

Q : Roberts corp reports pretax accounting income of 200000

Q : What is the value of the marginal propensity to save in

Q : Outcomes for the three alternatives are expected to be 1

Q : In the absence of other temporary or permanent differences

Q : Create a java application to convert english words to pig

Q : Year income loss tax rate income tax 2009 30000 35 10500