Answer to: C = 50 + 0.80Yd; C = consumption function; Yd = disposable income (Y-T) T = 40; T = Tax revenue I = 100; I = Investment G = 150; G = Government.
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Answer to: Suppose we have an economy of the type described by the following functions: C = 50 +.8Yd I = 70 G = 200 TR = 100 t = .20 where I, G...
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C = 50 + 0.80Yd = 50 + 0.80 (Y – T) = 50 + 0.80 (Y – 0.20Y) ... Budget surplus = 200 – 200 = 0. Budget surplus = 0.
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Consumption function: C = 50 + 0:8Yd, where Yd is disposable income. Autonomous investment: I¯ = 70. Government expenditure: G¯ = 200.
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C = 140 + 0.9 (Yd). This is the consumption function where 140 is autonomous consumption, 0.9 is the marginal propensity to consume, and Yd is disposable (i.e. ...
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Note: Remember when we have the consumption function in the form C = a + b(Y – T) that autonomous ... C = 125 + 0.75(Y – 100) = 50 + 0.75Y ... C. S. 0.
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C = 50 + 0.8Yd G =80I=70 T=100 Calculate the national income equilibrium__________________. C 50 0 8Yd G 80I 70 T 100 Calculate the national income ...
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Therefore, multiply the change in government spending. (as that is going to affect demand directly) by the multiplier to get 2.5(−40) =.
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217). Consider a model for a closed economy with no government. Suppose the consumption function is given by C = 100+ 0.8Y, while investment is given by I = 50.
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Suppose C =40+0.8 YD , T =50, I =60, G =40, X =90, M =50+0.05 Yi Find equilibrium income.ii Find the net export balance at equilibrium income.iii What ...
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(+50) = 500 and the new equilibrium income will be 1500 + 500 =2000. Page 2. c) This change in I now has a bigger (double) impact on Y since the multplier is.
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QUESTION 3: IS-LM 50 points ... Z= C + I + G = c1(Y-T0) + b0 + b1Y- b2i + G0 = (G0 -c1T0 +b0 -b2 i) + ... c a. Tc. M c. Y. YaaY a c. Tc. M a i. 1. 01. 0.
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C = 400. Investment is given as: I = 150 + 0.25Y – 1000i. We sub in our values for i and Y from (b):. I = 150 + 0.25(1000) – 1000(0.05). I = 150 + 250 – 50.
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=> savings = 1,100 crores. Was this answer helpful? upvote 0.
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