Consider the following information: Marginal propensity to consume = 0,68 Investment = R200 million Autonomous consumption...

 

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Consider the following information: Marginal propensity to consume = 0,68 Investment = R200 million Autonomous consumption = R70 million Government Expenditure = R150 million Tax rate= 0,28 Exports = R300 million Autonomous Imports = R450 million Marginal propensity to import = 0,55 1. Calculate the Marginal Propensity to Save 2. Calculate the multiplier 3. Calculate the aggregate autonomous expenditure 4. Calculate the equilibrium level of income 5. Explain how an increase in autonomous government spending will affect the equilibrium level of income considering the multiplier effect and process of convergence towards a new equilibrium 6. Explain how a decrease in autonomous investment spending will affect the equilibrium level of income considering the multiplier effect and process of convergence towards a new equilibrium 7.Define the law of the Keynesian Model of Economic analysis. (Keynes Law) Consider the following information: Marginal propensity to consume = 0,68 Investment = R200 million Autonomous consumption = R70 million Government Expenditure = R150 million Tax rate= 0,28 Exports = R300 million Autonomous Imports = R450 million Marginal propensity to import = 0,55 1. Calculate the Marginal Propensity to Save 2. Calculate the multiplier 3. Calculate the aggregate autonomous expenditure 4. Calculate the equilibrium level of income 5. Explain how an increase in autonomous government spending will affect the equilibrium level of income considering the multiplier effect and process of convergence towards a new equilibrium 6. Explain how a decrease in autonomous investment spending will affect the equilibrium level of income considering the multiplier effect and process of convergence towards a new equilibrium 7.Define the law of the Keynesian Model of Economic analysis. (Keynes Law)

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1 Marginal Propensity to Save MPS 1 Marginal Propensity to Consume MPC 1 068 032 2 Multiplier 1 1 MP... View the full answer