In April 2025
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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
Evaluate the following argument: ‘Since pollution is a negative externality, it would be socially optimal to declare illegal the use of any production process that create pollution’.
