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Government ling=R500



rts: R300



Autonomous consumption =R200



Autonomous imports =0



Investment expenditure re=R100



Marginal propensity to consume =0,6



Marginal propensity to import =0,1



Proportional tax rate = 0, 25



Aggregate autonomous expenditure (A) is equal to



O a. R200.



O b. R300.



O c. R500.



O d. R800.



e. R1 100.

Use the following information to solve questions.




Total income =40 000




Autonomous consumption =10 000




c = 0.7




Tax rate =0.35




Disposable income is...




O a. 11 600




O b. 26 000




O c. 14 000




O d. 18 200

Given a consumption function C=1 000+0,4Y with a proportional income tax rate of 40%, what is the multiplier? Round off your answer to two digits after the decimal.



O d. 2,78



O c. 2,50



O b. 1,70



a. 1,32

Assume that Malaysia is a closed economy without a government. Now under new leadership they decided to introduce government and taxation into the economy. Use the following information to solve the question.



Autonomous ption=2 000 million



Autonomous ent = 1500 million



Autonomous government spending =1200 r million



c = 0.65



t = 0.15



Full employment =6 5c million



To reach full employment, government spending should be adjusted by...



O a. 2 459 million.



O b. 1745 million



O c. 2 459 million -

Which statement is correct?



O a. Government cannot increase the equilibrium level of income by increasing government spending.



O b. Government can increase the equilibrium level of income by increasing taxes.



O c. Government can decrease the equilibrium level of income by decreasing taxes.



O d. Government can reduce the equilibrium level of income by increasing government spending.



O e. Government can reduce the equilibrium level of income by decreasing government spending.

The introduction of taxes to the Keynesian model...



O a. Increases investment spending at each positive level of income.



O b. Cause the slope of the consumption curve to become steeper.



O e. Causes the consumption function to shift parallel downwards.



O d. Causes the consumption function to shift parallel upwards.



O c. Flattens the consumption curve.

The introduction of the foreign sector in the Keynesian model_ the slope of the consumption function. As a result, the multiplier becomes



O d. reduces; larger



b. reduces; smaller



c. increases; smaller



a. increases; larger

The introduction of taxes to the Keynesian model...




O a. Increases investment spending at each positive level of income.




O b. Cause the slope of the consumption curve to become steeper.




O e. Causes the consumption function to shift parallel downwards.




O d. Causes the consumption function to shift parallel upwards.




O c. Flattens the consumption curve.

5. Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch. Here is their willingness

The monopolist operates in the inelastic portion of its downward sloping demand curve.. true or false explain

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