Question: Given the equations C = 150 + 0.8Yd, Yd = Y-T, I = 400, G = 700, T: .2Y, X: 130 and M = 0.14Y,

Given the equations C = 150 + 0.8Yd, Yd = Y-T,

Given the equations C = 150 + 0.8Yd, Yd = Y-T, I = 400, G = 700, T: .2Y, X: 130 and M = 0.14Y, the marginal propensity to spend on national income in this model is... O a. 0.86 O b. 0.50 O c. 0.84 Q d. 0.54 0 e. 0.64

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!

2. Consider the simplest macro model with demand-determined output. The equations are: C = 150 + 0.8Yd, Yd = Y-T, I = 400, G = 700, T=.2Y, X = 130, and IM = 0.14Y. a. What is the Marginal Propensity...

2. Consider the simplest macro model with demand-determined output. The equations are: C = 150 + 0.8Yd, Yd = Y-T. /= 400, G = 700, T= .2Y, X = 130, and IM = 0.14Y. What is the Marginal Propensity to...

Exercise 2. Maybank: Meeting Customer Needs in a Changing Environment Menara Maybank, the Head Office of Malaysia's largest financial services group, Maybank, may stand 58 storeys in central Kuala...

Exercise 1 - Slutsky equation 1. Assume there are two goods, 1 and 2. Illustrate graphically the Slutsky decomposition of a decrease in the price of good 1 under the assumption that it is a normal...

Section A. 1) The Economy cannot be considered fully employed unless the measured unemployment rate is below 1%. Agree or disagree and explain your answer in a paragraph. What is the current actual...

Please use the attachment for guidance. Complete each of the following economic problems. Problem A Use the national income data in the table below to compute the following: GDP. NDP. NI....

The following graph plots three planned expenditure lines for a hypothetical economy, each associated with a different price level. The line labeled PE120 corresponds to a price level of 120; the...

1. Suppose you are given the following information for an economy without government spending, exports, or imports.C is desired consumption, I is desired investment, and Y is income. C and I are...

3. Assuming marginal propensity to consume is constant, complete the table below. Y C S AE=Y 0 -50 50 100 130 50 200 50 300 50 400 50 500 50 600 50 700 50 800 50 900 50 1000 50 Consider an economy...

Greetings! May I please receive help with these questions? I would also like to get help with all of the questions as it is urgent. Also for the graphs please do mentions the points as it gets...

The demand for MMR II vaccine in the adult internal medicine department of SLUcare is very low, but stable throughout the year, meaning that there is no trends or seasonal variability. They follow a...

A company produces 100 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactures circuit in-house but is considering outsourcing the circuits at a...

In the Perpetuity Method, what is the Equity Value Per Share when running the Base Case Drivers? $ 2 0 . 8 5 per share $ 2 3 . 1 7 per share $ 1 8 . 2 6 per share $ 1 4 . 9 9 per share

Using 360 days as the denominator, calculate interest for the following notes using the formula I = P R T. Principal Rate Time Interest 6.00% 7.50 $5,000 1,000 4,500 950 30 days 60 120 8.00 6.80...

The Spectrum Fitness Club charges a nonrefundable annual membership fee of $1,200 for its services. For this fee, each member receives a fitness evaluation (value $200), a monthly magazine (annual...

Hastings & Daughters produces and sells a component used in general aviation aircraft engines. Each unit is priced at $25 and the variable cost for each unit is $17. The annual fixed cost is...

The trial balance of Pacilio Security Services Inc. as of January 1, 2020, had the following normal balances: Cash ..................$122,475 Petty cash ................ 100 Accounts receivable...

Calculate total time in days for the following notes. (Assume there are 28 days inFebruary.) Time in Days Date of Note Due Date July 17 October 1 September 5 February 5 May 16 March 18 May 4 August...

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

2. In this chapter, the reader should reflect on the following concepts: Social facts, concrete fallacy, constructs, overestimation error.

1. Explain the following statements: a) Objective reality is always subjectively interpreted. b) What we know depends on whom we got to know it from.

4. Give examples from your everyday life where the process affects the result, but where the result also affects the process.