according to the keynesian model,the factors that influence a household's induced consumption are the marginal propensity to consume and...

Md Ariful Islam

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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 in their earnings and viceversa.

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

induced consumption expenditure = 0.9*Income

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If the discretionary income in a nation rises from $13 trillion to $15 trillion and consumption spending increases from $12 trillion to 13.5 trillion what is the marginal propensity to consume?

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

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If marginal propensity to save is 3/4, then the marginal propensity to consume is

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

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autonomous consumption c1=R200 autonomous investment =R600 marginal propensity to consume c= 3/4 the equilibrium level of income is (1) R8000 (2) R32000 (3) R6000 (4) R2000

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

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autonomous consumption c1=R2000 autonomous investment =R6000 marginal propensity to consume c=3/4 the value of the multiplier is (1) 3/4 (2) 1/4 (3) 5 (4) 4

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

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In the aggregate expenditures model, the size of the marginal propensity to consume (MPC) is assumed to always be

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

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The model of income determination is called a keynesian model.what makes it keynesian and classical? Elucidate your argument

Accordingly, Keynesian AS curve tends to be drawn according to assumption which total expenditure is similar to total income. Total income gained tends to be spent fully various types of services...

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Consider the following information: Marginal propensity to consume = 0,9 Investment = R180 million Autonomous consumption = R105 million. The equilibrium level of income is:- Question 2 options:

At Equillibrium, AD=ASY=C+IC=a+bYC=R105+0.9YY=R105+0.9Y+R108Y-0.9Y=R2130.1Y=R213Y=R213/0.1=R2130

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if the marginal propensity to save is 3/4,then the marginal propensity to consume is (1) 1 (2) 4 (3) 1/5 (4) 1/4

(4) 1/4

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Colonialism programmed African countries to: A.Produce and import what they consume B.Consume what the produce and to produce what they consume C.Import and refine goods D. Consume and consume

The answer is A.

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