You are given the following consumption function: C = RM150 million + 0.75Yd Based on the above consumption function, answer the following questions: How much is: Autonomous consumption Autonomous saving How much is the disposable income when saving is zero? If there an investment of RM200 million, what will be the new equilibrium level of income.

You are given the following consumption function: C = RM150 million + 0.75Yd Based on the above consumption function, answer the following questions: How much is: Autonomous consumption Autonomous saving How much is the disposable income when saving is zero? If there an investment of RM200 million, what will be the new equilibrium level of income.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 3TY

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