Answer to Question #14992 in Macroeconomics for michael

Question #14992
Using the simple Keynesian model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function. What would happen to equilibrium income if there is a sustained rise in private investment spending?
1
Expert's answer
2012-09-18T11:26:03-0400
= Consumption decrease C↓A: Pay off debt = Savings increase S↑, Consumption decrease C↓. Not spending= Consumption decrease C↓.A: Pay off debt = Savings increase S↑, Consumption decrease C↓. Not spending= Consumption decrease C↓..Using the simple Keynesian model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function, we can say, that Paying off debt = savings increase and Consumption decrease.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS