Question: Urgent QUESTION 2 (CLO 2) A household total consumption increases from RM 3000 to RM 3850.50 when the level of income increase by 30% from

Urgent

QUESTION 2 (CLO 2) A household total consumption increases from RM 3000 to RM 3850.50 when the level of income increase by 30% from RM3150. a) Explain marginal propensity to consume (MPC) and marginal propensity to save (MPS) with appropriate examples (including formine if any). (10 marks) b) Based on the information given. i Calculate MPC and MPS. (3 marks) ii. Justify your answer (3 marks) 111 Derive consumption and saving function given autonomous consumption is RM2050 (2 marks) c) Given the amount of tax is 0.12Y, autonomous investment is RM1012. government spending is RM1050, import is RM1116 and export is RM2100, 1. (6 marks) Caleulate the equilibrium income ( I Find the amount of tax at equilibrium. 11. (1 marks)

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