Fill in the BlanksAnswers typed in all of the blanks will be automatically saved.- current answer: <p id="">Consider this economy:</p> <p id="">C = 100 + 0.5Y</p> <p id="">I = 400 + 0.1Y</p> <p id="">- br -</p> <p id="">The marginal propensity to consumer is <b>.</p> <p id="">The multiplier is <c>.</p> <p id="">Autonomous spending is <d>.</p> <p id="">Autonomous consumption is <e>.</p> <p id="">- br -</p>Consider this economy:C = 100 + 0.5YI = 400 + 0.1YThe marginal propensity to consumer is b - Numeric Answer.The multiplier is c - Numeric Answer.Autonomous spending is d - Numeric Answer.Autonomous consumption is e - Numeric Answer.
Question
Fill in the BlanksAnswers typed in all of the blanks will be automatically saved.- current answer: <p id="">Consider this economy:</p> <p id="">C = 100 + 0.5Y</p> <p id="">I = 400 + 0.1Y</p> <p id="">- br -</p> <p id="">The marginal propensity to consumer is <b>.</p> <p id="">The multiplier is <c>.</p> <p id="">Autonomous spending is <d>.</p> <p id="">Autonomous consumption is <e>.</p> <p id="">- br -</p>Consider this economy:C = 100 + 0.5YI = 400 + 0.1YThe marginal propensity to consumer is b - Numeric Answer.The multiplier is c - Numeric Answer.Autonomous spending is d - Numeric Answer.Autonomous consumption is e - Numeric Answer.
Solution
The text you provided seems to be a template for an economics problem, but you didn't provide a specific question. However, I can help you understand the terms and how to find them:
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The marginal propensity to consume (MPC) is the increase in consumer spending due to an increase in income. In the equation C = 100 + 0.5Y, the MPC is 0.5.
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The multiplier is 1/(1-MPC). If the MPC is 0.5, the multiplier is 1/(1-0.5) = 2.
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Autonomous spending is the sum of all the constant terms in the consumption and investment functions. In this case, it's 100 (from the consumption function) + 400 (from the investment function) = 500.
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Autonomous consumption is the part of consumption that does not depend on income. In the consumption function C = 100 + 0.5Y, autonomous consumption is 100.
So, the answers would be:
b - 0.5 c - 2 d - 500 e - 100
Please let me know if you have a specific question related to this problem.
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