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ECS1601-25-Y
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This question is based on the following equation which refers to a closed economy with no government: C = 100 + 0,75Y
Which of the following statements is/are correct?a) When income is zero, private savings are -100.
b) The savings function is given by S = -100 + 0,25Y.c) The slope of the savings function is 0,75.Assuming an open economy with both government and foreign sector, use the following information to answer the question.
Consumption spending increased from R3 750 to R5 700, and income increased from R5 000 to R7 600 in normal terms.
t = 0.20
m = 0.12
His marginal propensity to consume is….. (round to 2 decimals)Use the following information to answer question:
Autonomous consumption = 1 200
Government spending = 1 500
Y = 5 000
c = 0.80
t = 0%
Total savings is…This question is based on the following information:
- Autonomous consumption = 200
Investment spending = 300
- Marginal propensity to consume = 0,80
Suppose that the South African economy is depicted by the following information:
Y = 10 000
S = -250 + 0.65Y
I = 500
G = 1 100
Z (autonomous) = 200
X (autonomous) = 300
m=0,13
Which of the following is correct?
i. The multiplier in the economy is 1.282.
ii. The equilibrium level of income is 3 436.95.
iii. The equilibrium level of income is 2 499.90.
iv. The multiplier in the economy is 2.083.