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a. Calculate the marginal propensity to consume (MPC). b. Calculate the marginal propensity to saving (MPS). c. Calculate the multiplier. d. What is autonomous consumption

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a. Calculate the marginal propensity to consume (MPC). b. Calculate the marginal propensity to saving (MPS). c. Calculate the multiplier. d. What is autonomous consumption in Pinkland? e. Construct the consumption function and saving function. f. Calculate saving when disposable income equals to $500 and $2,000. The following information is about disposable income (Yd) and consumption (C) for country of Darul Aman: Disposable Income Consumption (millions of RM) ( millions of RM) 100 150 200 200 300 250 400 300 a. Construct the consumption function. b. Draw the consumption function. c. Assume that investment in Darul Aman = RM100 millions. At what income level savings equal to investment? Calculate the multiplier and explain its meaning. Given that the following data (figures in millions of RM): Consumption (C) = 500 + 0.8Y Investment (1) = 40 Government spending (G) = 50 Given that, Y = TE where Y = GDP a. What is the MPC and MPS. b. Based on the information provided, calculate the equilibrium level of national income C. Draw the national income equilibrium curve based the answers in (b). Assume government spending (G) increased by 10 millions, calculate the equilibrium level of income using the concept of multipliers

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