Question

Government spending =R550

Exports =R330

Autonomous consumption =R280

Autonomous imports =R170

Investment expenditure =R120

Marginal propensity to consume =0,75

Full employment level of income =R5700

A.Autonomous expenditure (Ā)is equal to 1.R900 2R960 3R1040 4R1110 B.What is the marginal propensity to save 1.1 2.1.60 3.0.25 4.0.40 CWhat is the equilibrium level of income Y*? 1R5120 2.4440 3.R4440 4.R5260

Answer 1

A-3;

B-3;

C-1;