What is level of savings at equilibrium

Reference no: EM13179980

Let us say that an economy has a consumption function given by C = 900 + 0.9Yd where Yd is the disposable income. There is a lump-sum tax of 90. Investment level is autonomous at 400 and government spending is also constant at 600.

(a) Find the equilibrium level of income

(b) What is the savings function?

(d) Is the government's budget balanced at equilibrium?

Reference no: EM13179980

Questions Cloud

Discuss the changing role of management : Do you agree with the statement? Discuss the changing role of management accountants with reference to how it impacts on the current business environment.

Explain the correct expression for the molarity : What is the correct expression for the molarity of the solution? (Be sure to express your answer to the correct number of significant figures and also show the absolute uncertainty.)

What is scientific significance of galapagos archipelago : What is the scientific significance of the Galapagos Archipelago?

Briefly explain what is the molar mass of the gas : completely evacuated and then filled with an unknown gas to a pressure of 747 mmHg at 22 degree C. If the glass bulb gained 0.103 g in mass, what is the molar mass of the gas?

What is level of savings at equilibrium : Let us say that an economy has a consumption function given by C = 900 + 0.9Yd where Yd is the disposable income. There is a lump-sum tax of 90. Investment level is autonomous at 400 and government spending is also constant at 600.

Effects of military dictatorship on political culture : Compare the effects of military dictatorship on political culture in both Brazil and Nigeria. To what degree were the effects similar in these two countries? Was one of the two affected more adversely (unfavorably, harmful, negatively, badly) than th..

State under anaerobic conditions lactic acid builds up : under anaerobic conditions lactic acid builds up due to the following reaction. A) prochiral b) archiral c) chiral d) both archiral and prochiral

How an employee rationalize his or her decision to conform : Identify two instances in the case study in which employees at Goodrich succumbed to the pressures of conformity. Consider the level at which both groupthink and diffusion of responsibility affected the actions of those involved in the A7D affair,..

Future of corporate social responsibility-business case : Is the future of corporate social responsibility more about accountability, a business case, ethics, sustainability, or even compliance, or a combination of these different qualities?

User Account

All Pages