Question
Use the behavioural equations below and answer the questions that follow: C = R4 billion + c1YD = R19.7 billion Y= R13.1 billion T= R6
Use the behavioural equations below and answer the questions that follow:
C = R4 billion + c1YD = R19.7 billion
Y= R13.1 billion
T= R6 billion
c0 = R13.5 billion
I. Determine the propensity to save.
II. What would happen to consumption (in the short run) if the government decides to increase taxes by R200 million a year and all the other variables remain the same?
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Economics for Environmental Studies A Strategic Guide to Micro and Macroeconomics
Authors: Alfred Endres, Volker Radke
1st edition
364231192X, 3642311925, 9783662548264, 3662548267, 978-3642311925
