Question
a)The following data relate to the economy of XYZ Shilling million Investment 4,000 Government Spending10,000 Autonomous consumption 8,000 Net exports 3,600 The marginal propensity to
a)The following data relate to the economy of XYZ
Shilling "million"
Investment 4,000
Government Spending10,000
Autonomous consumption 8,000
Net exports 3,600
The marginal propensity to save of the economy of country XYZ is 0.4
Required:
i)Write the consumption function of the economy.(2 marks)
ii)Compute the equilibrium level of income in the economy.(3 marks)
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The Economics Of The Environment
Authors: Peter Berck, Gloria Helfand
1st Edition
978-0321321664, 0321321669
