Given that the consumption function is C 10 0 3Yd, where Yd is disposable income, while the government imposes a RM10 tax for every RM100 income earned and the marginal propensity to import is 0 2, compute the multiplier effects Given that the consumption function is C 10 0 3Yd, where Yd is disposable income, while the government imposes a RM10 tax for every RM100 income earned and the marginal propensity to import is 0 2, compute the multiplier effects A 1 075 B 1 213 C 1 523 D 1 125

The Answer is in the image, click to view ...

Question: Given that the consumption function is C = 10 + 0.3Yd, where Yd is disposable income, while the government imposes a RM10 tax for every

Given that the consumption function is C = 10 + 0.3Yd, where Yd is disposable income, while the government imposes a RM10 tax for every RM100 income earned and the marginal propensity to import is 0.2, compute the multiplier effects

A ; 1.075

B; 1.213

C ; 1.523

D ; 1.125

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Hello. Below are the questions that I got wrong for my test. I would like to know the exact answers for future references. 1) Given the below: GDP at market value is RM1,200 mil Government Spending...

29. Given consumption function is C = 20+ 0.5Yd where Yd is disposable income, tax, T = 10 , domestic investment, I = 20, government spending, G = 10 and net export, X - M = -20 What is the...

a. Calculate the marginal propensity to consume (MPC). b. Calculate the marginal propensity to saving (MPS). c. Calculate the multiplier. d. What is autonomous consumption in Pinkland? e. Construct...

Consider the following Keynesian consumption function: = 30 + 0.4, keeping in mind that indicates disposable income, which can be allocated only between consumption needs and savings. a. Derive the...

1 Principles of Economics ECON1011 Short-answer Assignment V2 (20% of final mark) The assignment consists of four questions. You should allocate at least half a page (or 250 words) to each answer....

A fall in the demand for Malaysia exports would result in a rise in the exchange rate when Select one: a. there is capital mobility. b. the country has a balance of payments surplus. c. exchange...

Consider an economy with the following characteristics: Consumption function is C = 100 + 0.8YD; Planned investment: I = 50; Government expenditure: G = 60; The tax function: T = 0.3Y; Exports of the...

1. Consider an economy with the following characteristics: Consumption function is C = 100 + 0.8YD; Planned investment: I = 50; Government expenditure: G = 60; The tax function: T = 0.3Y; Exports of...

4. Consider an economy with the following characteristics: Consumption function is C = 100 + 0.8YD; Planned investment: I = 50; Government expenditure: G = 60; The tax function: T = 0.3Y; Exports of...

1. Gross fixed capital formation (GFCF) (investment) one of the most volatile components of GDP. In a diagram, show the movement of private and public GFCF of Australia over 2005 and 2024. Explain...

P owns a 60 percent interest in S, and S owns a 40 percent interest in T. Should T be consolidated? If not, how should T be included in the consolidated statements of P and Subsidiaries?

Mark Hockenberry owns and manages a computer repair service, which had the following trial balance on December 31, 2013 (the end of its fiscal year). Summarized transactions for January 2014 were as...

Match the following descriptions with the warranties listed here. Write your answer in the space provided.

Question 1 7 David and Jim Matheson studied R&D organizations and developed a classification scheme that could be used for assessing a project portfolio. They separated projects in terms of degrees...

8. Set a goal that you really want to achieve in the near future, lets say 12 years. How does this goal fit in relation to the form roles and values above? What role and what value was it that...

7. Fill out the form below. Only the most important roles and your basic values are to be filled.

10. Try to remember the last communication you entered into. How many times did you fill in information that the other person did not convey? How many times did you speak before the other person...