Planned investment is a negative function of Savings Real GDP Disposable income

Question

Planned investment is a negative function of Savings Real GDP Disposable income Interest rates None of the above Assume that C = 200 + 0.8 Y_D where C is consumption & Y_D is disposable income. Also assume that household income = 1500 & net taxes = 500. Then C = 1400 1200 1100 1000 None of the above Assuming the same information as in Question 8, what is Delta C when Delta Y_C = 100? 300 100 80 20 None of the above Assuming the same information as in Question 8, what is the marginal propensity to save? None of the above Assuming the same information as in Question 8, what is the change in autonomous consumption when Delta Y_D = 200? 200 160 120 0 None of the above

Explanation / Answer

None of these 1000 (Calculation: C = 200+0.8(1500-500)) 80 (Calculation: multiplier = 0.8) 0.2 (Calculation: MPS = 1-MPC = 1-0.8 = 0.2) 200 (Calculation: It is the C level when Yd = 0)

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