Assume a consumption function that takes on the following algebraic form: C= 400 + 0.6 Y. Assume that Y= 7600 what is the level of consumption at this income level. Answer:

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter7: Types And Costs Of Financial Capital
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Assume a consumption function that takes on the following algebraic form: C= 400 +
Assume thatY= 7600 what is the level of consumption at this income level.
0.6 Y.
Answer:
Determine the impact of a decrease in tax of $3 billion on aggregate level of output at
equilibrium when the MPS is 0.25
Select one:
Oa.-$12 Billion
Ob$12 Billion
6s9 Billion
ds9 Billion
Transcribed Image Text:Assume a consumption function that takes on the following algebraic form: C= 400 + Assume thatY= 7600 what is the level of consumption at this income level. 0.6 Y. Answer: Determine the impact of a decrease in tax of $3 billion on aggregate level of output at equilibrium when the MPS is 0.25 Select one: Oa.-$12 Billion Ob$12 Billion 6s9 Billion ds9 Billion
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