Answer to Question #103309 in Macroeconomics for December

Question

A. Equilibrium level of income is that at which

1. The budget is balanced
2. The balance of payment is in equilibrium
3. The economy is at full employment level of income
4. There is no tendency of national income to change

B. In the simple Keynesian model with no government and external sector, if an increase in investment expenditure of 150 results in a final increase in income of 600, it follows that the marginal propensity to consume must be

1. 0,2
2. 0,75
3. 0,25
4. 0,8

Answer 1

A-1

B-3