# Working with consumption, multipliers and planned investment

Definitions: c=level of consumer spending

y=level of income

s=level of savings

If C=40+ .5Y

a. Find the level of consumer spending and the level of savings for the following levels of income: 100, 200, and 300.

b. What will be the equilibrium level of income when planned investment expenditure is equal to 60?

c. What is the value of the multiplier?

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...en Y = 200, C = 40+ .5*200 = 140 and S = 200 - 140 = 60 so s = 60/200 = 0.3

When Y = 300, C = 40+ .5*300 = 190 and S = 300 - 190 = 110 so s = 110/300 = ...