Autonomous consumption = R100m Investment spending = R300m Government spending = R200 million Exports = R150 million Autonomous imports = R100 million Marginal propensity to consume =2/3 Tax rate = 1/10 Marginal propensity to import = 1/10 Yf = R2 150 million Autonomous spending = 650 million (already calculated) Calculate the size of the multiplier. Calculate the size of equilibrium level of income
Autonomous consumption = R100m Investment spending = R300m Government spending = R200 million Exports = R150 million Autonomous imports = R100 million Marginal propensity to consume =2/3 Tax rate = 1/10 Marginal propensity to import = 1/10 Yf = R2 150 million Autonomous spending = 650 million (already calculated) Calculate the size of the multiplier. Calculate the size of equilibrium level of income
Chapter8: Aggregate Demand And The Powerful Consumer
Section: Chapter Questions
Problem 3DQ
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Autonomous consumption = R100m
Investment spending = R300m
Government spending = R200 million
Exports = R150 million Autonomous
imports = R100 million
Marginal propensity to consume =2/3
Tax rate = 1/10
Marginal propensity to import = 1/10
Yf = R2 150 million
Autonomous spending = 650 million (already calculated)
Calculate the size of the multiplier.
Calculate the size of equilibrium level of income
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