Answer to Question #219949 in Macroeconomics for vee

Question

8.Which of the following factors will not affect the size of the multiplier?

[1] marginal propensity to consume [2] investment spending [3] marginal propensity to import [4] tax

9. What is the aggregate spending equation if the saving function is S = -1000 + 0.25Y and autonomous investment spending is 100?

[1] A = 1000 + 0.25Y [2] A = 1000 + 0.75Y [3] A = 1100 + 0.25Y [4] A = 1100 + 0.75Y

10. Which one of the following statements is correct given that C= 400 + ¾ Y and income level is 1000?

[1] total consumption is R 400 [2] total consumption is R1150 [3] aggregate spending is R 1000 [4] marginal propensity to save is 0.75

Answer 1

1.  investment spending
2. A = 1000 + 0.75Y
3. total consumption is R1150