3.12 An increase in government spending in the Keynesian model leads to... 1 1 Demand that is greater than supply. [2] Demand that is lesser than supply. [3] Demand that equals supply. [4] Decrease in production.Consider the following information to answer questions 3.8 to 3. 12 Government spending = R550 Exports = R330 Autonomous consumption = R280 Autonomous imports = R170 Investment expenditure = R120 Marginal propensity to consume = 0,75 Full employment level of income = R5700 3.8 Autonomous expenditure (A) is equal to [1] R900. [2] R960. [3] R1 040. [4] R1 110. 3.9 What is the marginal propensity to save? [1] 1 [2] 1.60 [3] 0.25 [4] 0.40 3.10 What is the value of the multiplier? [1] 2 [2] 2.50 [3] 4 [4] 3 3.11 What is the equilibrium level of income Y*? [1] R5 120 [2] R4 440. [3] R4 400 [4] R5 260