If MPC and MPS are equal, what is the value of multiplier?

Q: Calculate the value of multiplier if MPS is 0.73

A: In a fractional-reserve banking system, a money multiplier is one of several closely related ratios…

Q: Precisely how do the APC and the MPC differ? Why must the sum of the MPC and the MPS equal 1? What…

A: A consumption schedule shows the amounts planned by the household to spend on consumption, given the…

Q: If a $20 increase in disposable income causes consumer spending to rise by $4, what is the…

A: The economics a study is based upon the idea that the resources which are present with the economies…

Q: Find Multiplier if the value of MPC is 0.65

A: The data presented in the question above is:- Marginal propensity to consume = 0.65  Multiplier is…

Q: graph questions Ollow 45° AE = C + I 1200 450 300 900 1,300 Aggregate output, Y a. What is the value…

A: The present value of all finished products and services in the economy is referred to as aggregate…

Q: In an economy investment increases by 120 billion. The value of multiplier is 4. Calculate MPC.

A: Below is the given values: Increase in the investment = 120 billion Multiplier = 4 MPC = ?

Q: Very briefly summarize the relationships shown by (a) the consumption schedule, (b) the saving…

A: A consumption schedule is a table that represents the relation between income and consumption…

Q: an increase in MPC, reduces the multiplier? true or fulse

A: The marginal propensity to consume is the concept which explains the increase in the consumption…

Q: Is the mpc in the multiplier .75?  only because multiplier is 1/(1-mpc) which would make sense for…

A: In the original question, MPS has given by stating "average households will save 25 cents of every…

Q: Is the relationship between changes in spending and changes in real GDP in the multiplier effect a…

A: The marginal propensity to consume is a statistic that quantifies induced consumption, which…

Q: The multiplier in the economy is 8.5 and the change in income is $3200 million What would be the…

A: The data being presented in the question is:- Multiplier = 8.5  Change in income = $3200 million…

Q: The value of multiplier depends on the _____

A: Multiplier refers to the magnitude by which the equilibrium output changes due to a change in…

Q: Suppose the MPC is .80, the MPI is .10, and the income tax rate is 10 percent. What is the…

A: Given that, MPC = 0.80, MPI = 0.10 and income tax rate is 10 percent.

Q: oblem 8. VWhat will the value of multiplier MPC = 1, (ii) MPC = 0, (iii) MPC = MPS?

A:

Q: Suppose that disposable income, consumption, and saving in some country are $400 billion, $350…

A: Marginal propensity to consume MPC is the proportion of an aggregate raise in income that a consumer…

Q: 12. Use the graph to answer the questions that follow. a. What is the value of the MPC? b. What is…

A: Dear student, You have asked for 2 questions in a single post. I am going to answer question number…

Q: If there is an increase in the personal income tax rate, and people do not receive a pay increase,…

A: The tax is a unilateral payment made by the public towards the government for various purposes such…

Q: a) Based on the information given on a hypothetical economy, answer the following questions. Saving…

A: In the Y-AE model, Equilibrium is where output equals aggregate expenditure.

Q: If the value of investment multiplier is 1 what will be the value of MPC

A: The information being provided is:- Investment multiplier = 1 MPC = ? We have to find the value of…

Q: Problem 10-01 (algo) The following table provides data for output (real GDP) and saving. a. Fill in…

A: To calculate the APC and APS are calculated by using the following formula APC =ConsumptionLevel of…

Q: If the value of MPC is 0.8, find the value of multiplier.

A: Multiplier refers to a proportionality factor that ascertains the level of change that an…

Q: Answer the following questions:   Instructions: Enter your answers rounded to the nearest whole…

A: MPC, marginal propensity to consume is the proportion of change in income that is spent on…

Q: Give an example of any factor that influences the size of the multiplier?

A: There are various factors which affect the the size of multiplier.

Q: Assume that Sweden has a closed economy where consumption function is " C = 400 + 0.6 Yd ", net tax…

A: t: Tax rate = 0.3 MPC: Coefficient of Yd = 0.6 Thus, Multiplier = 1 / [1 - MPC x (1 - t)]

Q: The value of Marginal propensity to consume is double the value of Marginal propensity to save.…

A: We are given with the following information:- The value of MPC is double that of MPS I.e MPC = 2MPS…

Q: Find out the value of multiplier when - (i) MPC (c) = .8, %3D (ii) MPS (s) = 0.25 %3D

A:

Q: Calculate the value of multiplier if change in income is $1100 million and the change in investment…

A: The information being given is:- Change in income = $1100 million Change in investment = $350…

Q: What is the value of multiplier?

A: Multiplier depicts the change of one factor on the other with different amounts. The multiplier can…

Q: what is MPC, MPS and spending multiplier?

A: In Keynesian economics, the concepts of marginal propensity to consume, marginal propensity to save…

Q: What is the minimum value of multiplier?

A: The multiplier is given by the formula:- k = 1 / ( 1 - MPC ) Where MPC is the marginal propensity to…

Q: Suppose that disposable income, consumption, and saving in some country are $400 billion, $350…

A: Introduction: Income remaining after deduction of taxes social security charges available to be…

Q: Assume that the unintended investment is negative. Briefly outline how the level of Ye will change…

A: Unintended investment can be positive and negative. It entirely depends on the buying of firms…

Q: In a simple, private economy, suppose that the MPC is 0.8 and investment rises by $20 million.At the…

A: The investment multiplier says that how much change of investment would cause how much change in…

Q: . Calculate

A: Marginal propensity to consume (MPC) is being defined as the share of additional income which a…

Q: If the ratio of MPC and MPS is 4:1 then the value of investment multiplier would be 4 True / False

A: # We know that the sum of MPC and MPS is always 1 That is:- MPS + MPC = 1

Q: If value of MP S is 0.25 what is the value of multiplier?

A: Multiplier refers to the situation where the number of times the level of income increases due to…

Q: If the value of MPS and MPC is same. What will be the value of multiplier

A: The information being given to us is as follows:- The value of Marginal propensity to save and…

Q: What is the relationship between the MPC and the multiplier?

A: The Keynesian consumption function shows the relationship between the consumption expenditure and…

Q: at is multiplier? Explain its forward and backward working

A: Ans in step 2

Q: In an economy MPC equals to 0.85 if investment is increased by $20 how more would be the increase in…

A:

Q: What is meant by multiplier?Why shoul the value of multiplier rise when people spend more on…

A: In economics, a multiplier generally refers to an economic factor that induces or adjusts many other…

Q: 4.f MPC was 90% in 2008, how much is MPS (Marginal Propensity to Savej?

A: is income is divided into two parts , MPC and MPS  , the combination of MPC and MPS is equal to 1…

Q: Given the Consumption Function C = 500 + 0.80Y, comppute the marginal propensity to consume and the…

A: Consumption Function C = 500 + 0.80Y Marginal propensity to consume(MPC) is the slope of the…

Q: e simple investment multiplier and what is its Equation and an example

A: ‘Multiplier’ is an economic factor, when applied upon a variable, amplifies the effect of some other…

Q: Net exports = $ |billion Equilibrium GDP = $ |billion d. What is the multiplier in this example?

A: real Domestic output (GDP = DI) billions Aggregate Expenditure, Private Closed Economy,Billions…

Q: Briefly discuss the following concepts iv. Government expenditure multiplier v. Potential output

A: Economics is related to the production, distribution, and consumption of goods and services.