The small island nation of Kaboom is simple economy with no government, no taxes, and no...
The small island nation of Kaboom is a simple economy with no government, no taxes, and no imports or exports. Kaboomers (citizens of Kaboom) are creatures of habit. They have a rule that everyone saves exactly 20 percent of income. Assume that planned investment is fixed and remains at 225 nmillion Kaboomian dollars. Further assume that autonomous consumption (independent of Y) is zero, so consumption (C) is MPC times Upper YMPC×Y. The following data are estimates for the island of...
MULT CHOICE OPTIONS 1. decrease, stay unchanged, increase 2. increase, Stan unchanged, decrease 3.saving equals investment, output reaches a peak, planned investment is zero The small island nation of Kaboom is a simple economy with no government, no taxes, and no imports or exports. Kaboomers (citizens of Kaboom) are creatures of habit. They have a rule that everyone saves exactly 25 percent of income. Assume that planned investment is fixed and remains at 225 million Kaboomian dollars. Further assume that...
The Republic of Yuck is a simple economy with no government, no taxes, and no imports and exports. Yuckers (citizens of Yuck) are creatures of habit. They have a rule that everyone saves exactly 21 percent of income. Assume that planned investment is fixed and remains at 65 billion Yuck dollars. Expert economists of the Republic of Yuck have estimated the following: Real GDP (Y): Planned Investment Spending (I): 65 billion Yuck dollars 190 billion Yuck dollars You are asked...