Question: Using the Keynesian model, explain the effect on national income of an autonomous increase in saving.

Using the Keynesian model, explain the effect on national income of an autonomous increase in saving.

Step by Step Solution

★★★★★

3.32 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

An autonomous increase in saving at each income level is equivalent to an autonomous decreas... View full answer

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

Document Format (1 attachment)

Word file Icon

678-B-E-I-E (543).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

Within the IS-LM model, what would be the effect of an autonomous increase in saving that was matched by a drop in consumption that is a fall in a in the consumption function? C = a + b(Y - T) Which...

Q:

True or False: 1. The expenditure multiplier applies to any increase in autonomous expenditures. 2. An increase of $10 million in autonomous consumption has the same effect on output as a $10 million...

Q:

Explain in words why rising prices reduce the multiplier effect of an autonomous increase in aggregate demand.

Q:

Give a brief answer I will appreciate GROSS VALUE ADDED BY KIND OF ECONOMIC ACTIVITY 2016 (Rm) Primary Sector 298 849 Secondary Sector 550 195 Tertiary Sector 1 945 557 Gross value added at basic...

Q:

Define the term budget deficit. (ii) State, with examples, two ways in which a recession can increase the size of the government's budget deficit. Illustrate your answer with a diagram. (iii)...

Q:

Define the term budget deficit. (ii) State, with examples, two ways in which a recession can increase the size of the government's budget deficit. Illustrate your answer with a diagram. (iii)...

Q:

Suppose the Canadian economy is facing a major global recession, and the minister of finance presents a plan to stimulate the economy: a) Using the income-expenditure model, explain the effect on GDP...

Q:

QUESTION ONE [40] 1.1 An increase in consumption expenditure can have positive effects in an economy. Using the IS-LM model, explain the effect of this economic event on the real gross domestic...

Q:

How do gross domestic product and gross national product differ? A. Gross national product does not include depreciation. B. Gross domestic product does not include intermediate goods. C. Gross...

Q:

How do gross domestic product and gross national product differ? A. Gross national product does not include depreciation. B. Gross domestic product does not include intermediate goods. C. Gross...

Q:

In response to a step voltage, the voltage waveform shown in the figure below was observed at the midpoint of a lossless transmission line with Z0 = 50 and up = 2 X 108 m/s....

Q:

Q3: Calculate the moments of inertia of the cross-sectional area of the beam relative to the x 'and y' axes passing through the center of gravity. Firstly, it is necessary to determine the location...

Q:

Suppose that the IHOP Corp., the International House of Pancakes restaurant company, will pay a $ 1 0 0 per share dividend over the next year. If investors require an 1 1 % annual return from...

Q:

A New York City cab operator appears to be making positive profits in the long run after carefully accounting for the operating and labor costs. Does this violate the competitive model? Why or why...

Q:

What factors caused the U.S. to shift its focus from a more multilateral approach to a more bilateral and plurilateral one?

Q:

What factors caused the U.S. to shift its focus from a more multilateral approach to a more bilateral and plurilateral one?

Q:

What are preferential agreements and why are they used by the United States?

Q:

I would like some direction into gathering the data needed for this problem. I don't need the answer but rather what type of analysis would you recommend? FCF? Walgreen was planning to buy Rite-Aid...

Q:

You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $1.850 and you have made every payment on time. The...

Q:

I need help filling out this ProForma. Please show the formulas used. Thanks. G H I K L M N 0 Year 3 Year 4 Year 5 % % % Per Door % % * Per Door % Per Door A B D E F 1 Independent Variables for Hotel...