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C = 200 + 0.6 y d g equal to 150 I equal to 240 tax equal to 10 + 0.2y transfer payment equal to 50 export equal to 30 + 0.2y in 4 equal to 400 find national income , investment multiplier , foreign transfer multiplier, tax multiplier ?
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C = 200 + 0.6 y d g equal to 150 I equal to 240 tax equal to 10 + 0.2y...
National Income Calculation
To find the national income (Y), we use the equilibrium condition where aggregate demand (AD) equals output (Y). The aggregate demand is given by:
AD = C + I + G + (X - M)
Where:
- C = Consumption
- I = Investment
- G = Government spending
- X = Exports
- M = Imports
Given:
- C = 200 + 0.6Y
- I = 240
- G = 150
- X = 30 + 0.2Y
- Assuming no imports for simplicity
Substituting into the equation:
Y = C + I + G + X
Y = (200 + 0.6Y) + 240 + 150 + (30 + 0.2Y)
Rearranging gives:
Y = 620 + 0.8Y
0.2Y = 620
Y = 3100
Investment Multiplier
The investment multiplier (k) is calculated as:
k = 1 / (1 - MPC)
Where MPC (Marginal Propensity to Consume) is 0.6.
k = 1 / (1 - 0.6) = 2.5
Foreign Transfer Multiplier
The foreign transfer multiplier takes into account the effect of foreign transfers (X) on national income. It is calculated as:
Foreign Transfer Multiplier = 1 / (1 - (MPC + MPM))
Assuming no imports (MPM = 0):
Foreign Transfer Multiplier = 1 / (1 - 0.6) = 2.5
Tax Multiplier
The tax multiplier is calculated as:
Tax Multiplier = -MPC / (1 - MPC)
Tax Multiplier = -0.6 / (1 - 0.6) = -1.5
Summary
- National Income (Y) = 3100
- Investment Multiplier = 2.5
- Foreign Transfer Multiplier = 2.5
- Tax Multiplier = -1.5
To find the national income (Y), we use the equilibrium condition where aggregate demand (AD) equals output (Y). The aggregate demand is given by:
AD = C + I + G + (X - M)
Where:
- C = Consumption
- I = Investment
- G = Government spending
- X = Exports
- M = Imports
Given:
- C = 200 + 0.6Y
- I = 240
- G = 150
- X = 30 + 0.2Y
- Assuming no imports for simplicity
Substituting into the equation:
Y = C + I + G + X
Y = (200 + 0.6Y) + 240 + 150 + (30 + 0.2Y)
Rearranging gives:
Y = 620 + 0.8Y
0.2Y = 620
Y = 3100
Investment Multiplier
The investment multiplier (k) is calculated as:
k = 1 / (1 - MPC)
Where MPC (Marginal Propensity to Consume) is 0.6.
k = 1 / (1 - 0.6) = 2.5
Foreign Transfer Multiplier
The foreign transfer multiplier takes into account the effect of foreign transfers (X) on national income. It is calculated as:
Foreign Transfer Multiplier = 1 / (1 - (MPC + MPM))
Assuming no imports (MPM = 0):
Foreign Transfer Multiplier = 1 / (1 - 0.6) = 2.5
Tax Multiplier
The tax multiplier is calculated as:
Tax Multiplier = -MPC / (1 - MPC)
Tax Multiplier = -0.6 / (1 - 0.6) = -1.5
Summary
- National Income (Y) = 3100
- Investment Multiplier = 2.5
- Foreign Transfer Multiplier = 2.5
- Tax Multiplier = -1.5
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C = 200 + 0.6 y d g equal to 150 I equal to 240 tax equal to 10 + 0.2y transfer payment equal to 50 export equal to 30 + 0.2y in 4 equal to 400 find national income , investment multiplier , foreign transfer multiplier, tax multiplier ?
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C = 200 + 0.6 y d g equal to 150 I equal to 240 tax equal to 10 + 0.2y transfer payment equal to 50 export equal to 30 + 0.2y in 4 equal to 400 find national income , investment multiplier , foreign transfer multiplier, tax multiplier ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about C = 200 + 0.6 y d g equal to 150 I equal to 240 tax equal to 10 + 0.2y transfer payment equal to 50 export equal to 30 + 0.2y in 4 equal to 400 find national income , investment multiplier , foreign transfer multiplier, tax multiplier ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for C = 200 + 0.6 y d g equal to 150 I equal to 240 tax equal to 10 + 0.2y transfer payment equal to 50 export equal to 30 + 0.2y in 4 equal to 400 find national income , investment multiplier , foreign transfer multiplier, tax multiplier ?.
C = 200 + 0.6 y d g equal to 150 I equal to 240 tax equal to 10 + 0.2y transfer payment equal to 50 export equal to 30 + 0.2y in 4 equal to 400 find national income , investment multiplier , foreign transfer multiplier, tax multiplier ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about C = 200 + 0.6 y d g equal to 150 I equal to 240 tax equal to 10 + 0.2y transfer payment equal to 50 export equal to 30 + 0.2y in 4 equal to 400 find national income , investment multiplier , foreign transfer multiplier, tax multiplier ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for C = 200 + 0.6 y d g equal to 150 I equal to 240 tax equal to 10 + 0.2y transfer payment equal to 50 export equal to 30 + 0.2y in 4 equal to 400 find national income , investment multiplier , foreign transfer multiplier, tax multiplier ?.
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