Evaluate the following statements as true or false and provide your reasoning. a. When MPL is less than APL, APL will fall. b. When MPL equals zero, APL will also equal zero.
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Evaluate the following statements as true or false and provide your reasoning.
a. When MPL is less than APL, APL will fall.
b. When MPL equals zero, APL will also equal zero.
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- DisposableIncomeYd ConsumptionC $2,000 $2,040 2,100 2,120 2,200 2,200 2,300 2,280 2,400 2,360 Refer to Exhibit 10-3. The marginal propensity to consume (MPC) is ___________?Mathematically prove that balanced budget multiplier is one. Interpret itFor each of the following, please explain each step and show it in the graph! b. The Marginal Propensity to Consume (MPC) is 0,8 and the government wants total spending to increase by $40 Billion. How much the multiplier and initial spending must the government do to achieve the goal? (Assume economy is at full employment and economist ignore possibility of crowding out effect)
- MULTIPLE CHOICE Which of the following statements best describes an implication of the Permanent Income Hypothesis? (1) The Marginal Propensity to Consume (MPC) out of permanent income is larger than the MPC out of temporary income. (2) The MPC out of permanent income is smaller than the MPC out of temporary income. (3) The MPC out of permanent income is equal to the MPC out of temporary income. (4) The MPC out of permanent income is larger than the MPC out of temporary income, only if income effects dominate substitution effects.When the MPC increases: a. the government spending multiplier stays the same b. the government spending multiplier decreases c. the government spending multiplier also increases d. the government spending multiplier could increase or decreases e.depending on whether government spending is increasing or decreasingIf MPC =2/3, actual GDP = $14,000 and potential GDP = $13,100, there is a __________(recessionary / inflationary) gap of $_____ and a _________ (decrease / increase) in personal taxes of$______ would eliminate the gap.
- If the MPC (Marginal Propensity to Consume) value of an economy is 0.8 then... a) Multiplier = 1.25 b) Multiplier = 5 c) Undefined multiplier d) MPS = 0.4if the value of MPC is 0.29 Find the value of MPSThe economy is characterized by the consumption function C = C(Y − T) = 500 + 0.75 (Y − T). If income increases by 100, and taxes increase by 20, then consumption will increase by: 40 80 60 375 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
- The average propensity to consume refers to the Group of answer choices percentage of income spent for current consumption expenditures for the minimum necessities of life percentage of income saved dollars of income spent for current consumption fact that people with higher incomes spend more for the necessities of lifeBelow are the information of four sector economy. All values are in RM billon. The saving function [Fungsi tabungan] : S = -200 + 0.15 Yd Investment, [Pelaburan] : I = 500 Government spending [Perbelanjaan kerajaan] : G = 300 Tax [Cukai] : T =100 Export (X) : X=200 Import (M) : M=100 Based on the data above, calculate the: a. Find value of MPC. b. Derive the consumption function for the above economy c. Calculate the equilibrium level of national income using the AD-AS approach.Find the value of MPC if MPS is 0.4.