Suppose that for a two sector model, the marginal propensity to consume (mpc) is 90%. What is the induced consumption expenditure equal to ?

marginal propensity to consume = (consumption spending2 - consumption spending1)/( income2 – income1) = ($13.5 - $12) / ($15-$13) = 0.75

MPC or Marginal propensity to consume is also given as, (1-MPS).  Where, MPS is marginal propensity to save.So, if MPS =3/4Then MPC = (1-3/4)                 = 1/4 or 0.25

Marginal propensity to save (MPS) is a part of the additional monetary unit received by the population, which increases the real cash income of the population and is aimed at...

Y=C+IC=a+cYY=200+0.75Y+6000.25Y=800Y=3200Since this answer doesn't exist, I've decided that it is 8000

(4) 4If MPC = 3/4 or 0.75, multiplier is=1/(1-0.75) = 1/0.25 = 100/25 = 4

A change in government spending that can eliminate the gap identified should be equal to the taxation offered to private sector

The other factor is that influences a households induced consumption is its disposable income, or the greater the level of income. A community's ability yo consume increases with the increase...

largeBased on the aggregate expenditures model, government spending or investment tend to the income of consumers, hence they will spend more.

(4) 1/4

The answer is A.