Principles of Econ Final Exam-2017 1. Complete the Table APS APC MPC MPS-K 340 $

Question

Principles of Econ Final Exam-2017 1. Complete the Table APS APC MPC MPS-K 340 $316 360 332 380 348 400 364 420 380 440 460 412 a. Find MPC, MPS, multiplier K and find the equilibrium income. b. if investment is $16 at all levels of income, find equilbrium income in the graph Estimate the GDP 2. U.s. experts of goods and services Consumption of fixed capital Government purchases Taxes on production and imports Net private domestic investment Transfer payments U.S. imports of goods and services Personal taxes 5194.2 17.8 11.8 59.4 14.4 52.1 13.9 16.5 40.5 Net foreign factor income 219.1 Statistical discrepancy Explain: ANY (5) Recession, Economic Growth, Treasury Bills, Peak, and Bond, aggregate demand, security, capital account, demand deposits, reserves with Federal Reserve Bank 3. a. Function of Money When re 15% New Deposit: $1500 00 Complete the table up to the 6 8ank Find TD: Total Deposits 4 aWhat are the instruments of credit control of FR8? What happens to money supply when these instruments are increased or decreased? b How is the current Account deficit balanced

Explanation / Answer

MPC=change in consumption/change in income= 0.8

MPS+MPC=1

So MPS=1-MPC=1-0.8=0.2

Multiplier k= 1/1-MPC=1/1-0.8=1/0.2=5

Equilibrium income=16/1-0.8=16/0.2=80

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