the back of the page 1 ll you " and you may use 1. Suppose that the consumption function is given by C - 300 +0.75 Yd. Then saving is equal to zero when disposable income is equal to $1200 False It will be zaks whin disposable income equal to 300- 2. The paradox of thrift is the idea that an increase in saving will lead to a decrease in real GDP in the fixed-price Keynesian model.. 3. Suppose a simple fixed-price Keynesian model with an MPC of 0.8 and MPIM of 0.2. The actual level of real GDP is $750 billion while the level of potential real GDP is $1000 billion. In this example, an increase in government spending of $100 billion will bring the economy to full employment. 4. Households with low income have higher MPCs than households with high income. 5. In the classical model, money neutrality means that changes in the money supply only affect real variables, not nominal variables