Impact of an increase in thriftiness, Macroeconomics

Assignment Help:

Consider the impact of an increase in thriftiness in the Keynesian-cross analysis. Assume that the marginal propensity to consume is unchanged, but the intercept of the consumption function is made smaller so that at every income level saving is greater. This will:

A) Lower equilibrium income by the decrease in the intercept multiplied by the multiplier.

B) Lower equilibrium income by the decrease in the intercept.

C) Raise equilibrium income by the decrease in the intercept.

D) Raise equilibrium income by the decrease in the intercept multiplied by the multiplier.


Related Discussions:- Impact of an increase in thriftiness

Aggregate demand in the cross model, Aggregate demand in the cross model ...

Aggregate demand in the cross model Because C and Im depends positively on Y while G, I and X are exogenous, aggregate demand Y D will depend positively on Y:  Y D (Y) = C(

Highest willingness to pay, Since anyone is able to obtain a license, not n...

Since anyone is able to obtain a license, not necessarily the low cost suppliers of archery lessons, and it is not necessarily the individuals with the highest willingness to pay w

Assignment #1, Explain the meaning of a production possibilities curve

Explain the meaning of a production possibilities curve

The goals of macroeconomic policy, THE GOALS OF MACROECONOMIC POLICY  E...

THE GOALS OF MACROECONOMIC POLICY  Economic analysis attempts to explain why problems arise in the economy and how these problems can be dealt with. It is, therefore, indispens

What is modifications to a polymer, What are three modifications to a polym...

What are three modifications to a polymer that can make it transparent? How will these modifications affect the mechanical properties of the polymer?

Government imposes a price floor, Consider the above table. Assuming the go...

Consider the above table. Assuming the government imposes a price floor on garbanzo beans of $8, what would be the likely result? a. no change, equilibrium would prevail b. T

Analyse manipulating monetary policy, Buckley (2009) writes that the UK was...

Buckley (2009) writes that the UK was in recession for several short periods during this time, which placed further emphasis on researchingrelationships between the price of oil an

Define economics, What is the study of economics about?

What is the study of economics about?

Theories of international trade, comparison between neoclassical factor end...

comparison between neoclassical factor endowment theory of international trade and classical labor cost theory of comparative advantage

Change in factor prices, Suppose that a firm has a budget of $30,000, that ...

Suppose that a firm has a budget of $30,000, that the wage rate is $10 per hour, and that the rental rate is about $100 per hour. I f the wage rate increases to $15 per hour and th

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd