What would be the value of marginal propensity to save

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Reference no: EM133426162

Question 1. If, Private Final Consumption Expenditure = $ 12,500, Exports = $ 5000

Investment Expenditure = $ 4800, Government Final Consumption Expenditure = $ 7200

Imports = $ 9000, Government Investment Expenditure = $ 8000

What would be Real GDP (Income = Y)?

Question 2. If, Autonomous Private Final Consumption Expenditure = $ 13,500, Exports = $ 5000

Investment Expenditure = $ 4500, Government Final Consumption Expenditure = $ 6800

Government Investment Expenditure = $ 8900

Marginal Propensity to Import = 0.1, Marginal Propensity to Save = 0.25, Tax rate = 20%

If Government increases its Investment Expenditure by $ 10,500, what would be the change in Real GDP (Income = Y)?

a. 29000b. 27000c. 24000d. 21000

Question 3. If, Autonomous Private Final Consumption Expenditure = $ 12,000, Exports = $ 5000

Investment Expenditure = $ 4500, Government Final Consumption Expenditure = $ 6800

Government Investment Expenditure = $ 8900

Marginal Propensity to Import = 0.1, Marginal Propensity to Save = 0.25, tax rate = 20%

If Government increases its Investment Expenditure by $ 11,500, what would be the value of Multiplier?

Question 4. If, Marginal Propensity to Consume = 0.15, what would be the value of Marginal Propensity to Save?

Reference no: EM133426162

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