For each of the following aggregate expenditure ((A E)) functions, identify the marginal propensity to spend (z)

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For each of the following aggregate expenditure \((A E)\) functions, identify the marginal propensity to spend (z) and calculate the simple multiplier.

a. \(A E=150+0.4 Y\)

b. \(A E=900+0.62 Y\)

c. \(A E=6250+0.92 Y\)

d. \(A E=457+0.57 Y\)

e. \(A E=500+0.2 Y\)

f. \(A E=1000+0.35 Y\)
g. Explain why the simple multiplier is larger when \(z\) is larger, independent of the value of autonomous expenditure.

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Related Book For  answer-question

Macroeconomics

ISBN: 9780133910445

15th Edition

Authors: Christopher T S Ragan

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