Given a hypothetical consumption function

(1) Given a hypothetical consumption function of the form_Y=C+I0+G0, + ß Yd Where: Yd = Y —T, Y = Income, T = TaxesGovernment spending and investment are exogenously determined at G and I respectively, Assumingthis model represent a three sectors economy, determine Investment multiplier, Government spending multiplier and Tax multiplier. If there is an increase in marginal propensity to consumer, how will this affect the national income?2.Assume the following information represents the National Income Model of a hypothetical economy.Y = C + I + G, C=a+b(Y-t), T=d +tY, I=I0, G=G0 ,Where a>0, 00, 0 Order your essay today and save 30% with the discount code: KIWI20

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