Question

Equilibrium level of income is 5000, autonomous consumption is 500
MPCis 0.4
Calculate investment expenditure

Answer 1

Answer:

Planting more trees will also add to the earth's natural beauty. Trees fight water pollution and prevent soil erosion. They prevent pollutants from flowing into water sources. The only way we can defend global warming and environmental pollution is by saving and planting trees.

                 WHOEVER CUTS TREES HAS NO RIGHT TO LIVE

Explanation:

Answer 2

Answer:

C = 2500

I = 2500

Explanation:

Y = 5000

ˉC = 500

MPC = 0.4

Y = C + I

C = ˉC + bY

C = 500 + 0.4 (5000)

C = 500 + 2000

C = 2500

Y = C + I

5000 = 2500 + I

I = 5000 - 2500 = 2500