Question

a) If the savings rate of country A is higher than that of country B, while...

a) If the savings rate of country A is higher than that of country B, while all other factors are fixed, public

the effect of an increase in the same amount of expenditure on National Income (Y)

explain that there will be more in the which country, based on the multiplier formula.

b)In an economy where the marginal investment trend (MPI=A) is 0.10, consumers believe that the increase in their income

if it tends to consume half, a decrease in national income (y) of 40TL in autonomous investments (I0))

calculate how much change (increase/decrease) will result.

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