Problem
In a basic Keynesian macroeconomic model it is assumed that Y = C + I whereI = 820 and C = 60 + 0.8Y.
What is the marginal propensity to consume?
What is the equilibrium level of Y?
What is the value of the multiplier?
What increase in I is required to increase Y to 5,000?
If this increase takes place will savings (Y - C) still equal I.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.