Question

Homework help ASAP please:
5. According to Keynesian theory, what is the most important determinant of households’ spending on goods and services?

A. The price level
B. The interest rate
C. Autonomous consumption
D. Disposable income
E. Government spending

9. At the point where the disposable income line intersects the consumption function, saving:

A. equals consumption.
B. equals disposable income.
C. is less than zero.
D. is equal to zero.
E. is greater than consumption.
The rest is in comments

Answer 1

@bohotness

Answer 2

which one do you think is you answr love

Answer 3

5, I don't know, maybe D. 9. E maybe. What do you think?

Answer 4

i agree love

Answer 5

1. Consider an economy in which C = 1000 + 0.75YD, I = 200, G = 300, T = 300, and (X-M) = 0.

A. Calculate equilibrium GDP. (3 points)






B. Calculate saving at this level of GDP. Hint: Use the equation for leakages. (4 points)






C. Calculate the spending multiplier. (2 points)

D. Calculate the tax multiplier. (2 points)

E. How will equilibrium GDP change if G increases by 100, and what is the new equilibrium level of GDP?

F. How will equilibrium GDP change if G and T both increase by 500, and what is the new equilibrium level of GDP?

Answer 6

what do you tihkn your answer is love

Answer 7

I need help on these

Answer 8

I don't know. Can you help with this?

Answer 9

i will try

Answer 10

http://r.search.yahoo.com/_ylt=A86.J3S68y5ViDgAM1snnIlQ;_ylu=X3oDMTEzbmdoYXFmBHNlYwNzcgRwb3MDMgRjb2xvA2dxMQR2dGlkA1lIUzAwNF8x/RV=2/RE=1429169210/RO=10/RU=http%3a%2f%2fwww.transtutors.com%2fquestions%2ftagged%2fautonomous-consumption%2f/RK=0/RS=0xfXl7HLAgYyHbNR1H4Sw4zE_PE-

Answer 11

Formulas I have
Y = C + I + G+ (X – M) * = times Y = [1 / ( 1 – b) * ( a + I + G + NX) ] – [ b / (1 – b) * T]

Answer 12

thats right

Answer 13

A. Y = [ 1 /(1 – 0.75) * (1,000+ 200 + 300 +0)] – [ 0.75 / (1-0.75)]
Y = [ 4 * 1500] – [ 3 * 300]
Y = [6000] – [900] = 5100

Answer 14

XD

Answer 15

leakages equation S+ T+M

Answer 16

Can you help calculate this please?

Answer 17

@bohotness, i'm having trouble calculating, as i don't know what S is .

Answer 18

hold on i am ba at that

Answer 19

A. Calculate the spending multiplier. (2 points)

1 / (1 –b)  1 / ( 1 - 0.75) = 4
Spending Multiplier = 4

Answer 20

sorry, spending multiplier is C. part

Answer 21

okay and its okay

Answer 22

I am having trouble with B. Any ideas?

Answer 23

D. Calculate the tax multiplier. (2 points)


MPC / ( 1 – MPC)
MPC = C / Yd
MPC = 0.208, rounded to 0.21
Yd=Y – T  4800
0.21 / ( 1 -0.21) = 0.3 rounded from 0.26

Answer 24

okay i thik you got d

Answer 25

E. How will equilibrium GDP change if G increases by 100, and what is the new equilibrium level of GDP? (4 points)

Y = [ 1 / ( 1- 0.75) * ( 1000 + 200 + 400+ 0)] – [0.75 / ( 1 - 0.75) * T ]
Y = [ 4 * 1600 ] – [ 3 * 300]
Y = [ 6400 ] – [ 900 ]
Y = 5500
The equilibrium GDP will rise from 5100 to 5500,the new equilibrium level of GDP is that Y = 5500

Answer 26

XDD okay you doing it can you show be b?

Answer 27

F. How will equilibrium GDP change if G and T both increase by 500, and what is the new equilibrium level of GDP? (3 points)

Y = [ 1 / ( 1- 0.75) * ( 1000 + 200 + 800 + 0) ] – [0.75 / ( 1 – 0.75) * 800]
Y = [ 4 * 2000 ] – [ 3 * 800 ]
Y = [ 8000 ] – [ 2400 ]
Y = 5600, or rounded to 6000
The equilibrium GDP will increase again, and with Y being 5600 or rounded, the new equilibrium level is at 6000.

Answer 28

b. I only have that leakages equation id S + T + M
For M, I only know that (x - M) = 0. T = 300. But I do not know the S. This is all I have on b.

Answer 29

wait you are on the right true love