What is the marginal propensity to consume, Macroeconomics

Assignment Help:

Question 1:

Consider a closed economy with no government sector in which consumption (C) is related to income (Y) by the equation:

C = A + bY

(a) What is the marginal propensity to consume?

(b) How is the level of savings related to income in the economy?

(c) At what is the level of national income savings would be zero?

(d) What would be the equilibrium level of income?

(e) Investment in this model is assumed to be autonomous. If investment was assumed to be induced, what main factor will determine its level?

(f) Clearly draw and explain the circular flow when the government sector is introduced in the model.

Question 2:

Write notes on ALL of the following:

(a) Functions of the Bank of Mauritius
(b) International Competitiveness
(c) Budget Deficit and Fiscal Stance


Related Discussions:- What is the marginal propensity to consume

What is money has nothing to do with token itself, What is money has nothin...

What is money has nothing to do with token We also consider that what is money has nothing to do with token or commodity itself: USD is money in United States but not in

The growth of per-capita gdp in the period immediately, An economy has the ...

An economy has the following parameter values: s ?=.3,d ?=.1,A ?=1,andL ?=100.2 The economy begins at steady state but at some point is attacked by Godzilla, destroying 70% of the

Find the quantities that each firm is selling, Two firms, producing an iden...

Two firms, producing an identical good, engage in price competition. The cost functions are c1 (y1) = 1:17y1 and c2 (y2) = 1:19y2, correspondingly. The demand function is D(p) = 80

What is productivity or average product, What is productivity? Produ...

What is productivity? Productivity or average product (AP): It is output person which is output divided through number of workers AP= Q/L. There labour Productivity can

Too much inflation or too much unemployment, While referring to the "EYE on...

While referring to the "EYE on YOUR LIFE" section on page 389 of the textbook, discuss the change in the U.S. unemployment rate and inflation rate over the past year based on the P

??, If the U.S. government were willing to convert dollars into gold at a f...

If the U.S. government were willing to convert dollars into gold at a fixed price, then dollars would be a. fiat money. b. commodity money. c. bank money. d. both fiat and

explain how to solve the evacuation-route problem, You are the mayor of a ...

You are the mayor of a beautiful city by the ocean, and your city is connected to the mainland by a set of k bridges. Your city manager tells you that it is necessary to come up wi

Different of cost, discuss the different of cost?draw the cost curves

discuss the different of cost?draw the cost curves

Citizens play in fostering global social progress, How is the global social...

How is the global social progress being measured today? Name some indicators of development progress that you believe reasonably reflect actual progress. What roles do corporate ci

Economists who believe that monetary policy, Those economists who believe t...

Those economists who believe that monetary policy is more potent than fiscal policy argue that the: A) Responsiveness of money demand to the interest rate is large. B) Responsive

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd