Question

5. Suppose that Jhne's incoeme inereases from $30,000 per yeir to $35,000. At the same tim, e consumption changes from $26,000 per year to $29,00 peryear. What is Jene's maginal propensity to save? a) 0.1 b) 0.3 e) 04 d) 0.6 Aggegate 4 In the above Keynesian cros diagram, the solld tine labeled "A" sepescts what curve? b) Incoma c) Inflacion 4) Ostput e) t 7. ls the above Keyncsian cross diagram which one of the Sollowing is TRUE at an income level of a) Houscholds will harve saving oqual to 300 b) The level of aggregate demand is higher than the level of output e) Bsineses will experience excess imventory accumulation d) Businesses will experience exces imentory depletion e) Businesses investment will be oqual to 300 8. Suppose the marginal propensiry to cxesume in an economy is 0.9. What would be the Keynesian multiplier in this econemy?