If the MPC is 0.75, then the multiplier is 4. Select one: True False

Q: Suppose the MPC is .6 and consumption increases by $8 billion. Consequently, total income through…

A: Given information, Change in consumption: $8 billion (increase) MPC: 0.6 Find: change in total…

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: Find out the value of the multiplier if the MPC is zero?

A: Generally in the given question, MPC is = zero MULTIPLIER = ?

Q: Assuming no government or foreign sector, if the MPC is 0.5, the multiplier is 1 0.2. 2 0.5. 3 4 5.…

A: MPC is the marginal propensity to consume, given as 0.5

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: The real life multiplier: a) is the same as the oversimplified multiplier formula suggests. b) is…

A: Multiplier Effect:- In economics, a rise in expenditure leads to a rise in national income and…

Q: If mpc = 0.9, the multiplier equals 10. %3D O True O False

A: Given  MPC=0.9 We know that the Keynesian multiplier: k=11-mpc

Q: Find the value of MPC when multiplier is stated as 0.97

A: MPC or the marginal propensity to consume is the percentage of consumer's income that the consumer…

Q: If a rise in national income of £100m causes consumption of domestic goods and services to rise by…

A: multiplier level depends on the consumption level , higher the consumption more the multiplier so…

Q: Derive the expenditure multiplier using the lump sum taxes (or fixed sum)

A: The ratio of change in the GDP due to change in the taxes is known as the the multiplier. The…

Q: Assume that the MPC is 0.70.  What is the income multiplier?   Question 46 options:   a)  0.3   b)…

A: MPC + MPS = 1 Where MPC is the marginal propensity to consumer  MPS is the marginal propensity to…

Q: If your income increases from $40,000 to $48,000 and your consumption increases from $35,000 to…

A: Answer to the question is as follows :

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: When price level is considered, the value of the multiplier will be less than that suggested by the…

A: The over simplified formula of the multiplier is, Multiplier = 1 / (1-MPC) , where MPC is the…

Q: If marginal propensity to save is 0.1 Find the value of multiplier

A: The information being given to us is as follows:- Marginal propensity to save = 0.1 We need to find…

Q: Calculate the value of MPC if the multiplier is given to be as 1.4

A: The value of multiplier is given as:- MULTIPLIER = 1 / Marginal propensity to save Also we know…

Q: Suppose a closed economy with no government spending or taxing is capable of producing an output of…

A: Given,  Output = $1700 Autonomous Consumption = $140 Intended Investment = $170 MPC = 0.50

Q: C= 500 + 0,8Y, tax rate(t)= 0,25, G=1000 ve I= 1200. X= 500, M= 500 + 0,1Y. Calculate the…

A: In an economy, the investment multiplier explains the change in the income level due to changes in…

Q: Calculate the value of MPS when the value of MPC is given to be as 0.25

A: We know that the sum of marginal propensity to consume and the marginal propensity to save is always…

Q: If the MPC = 3/5, then the government purchases multiplier is 5/3 5/2 5 1.5

A: Marginal propensity to consume is the proportion of the additional income used for the consumption…

Q: If investment increases by $300 and, in response, equilibirum real GDP increases by $600, the…

A: In an open economy, GDP is the sum of consumption, investment, government spending and the net…

Q: If the ratio of MPS and MPC is 1:4 then find the value of multiplier.

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

Q: How would an increase in taxes influence the size of a multiplier in a four factor model

A: The four factors of production in the economy are land, labor, capital, and organization and these…

Q: Consider a hypothetical economy where there are no taxes and no foreign trade, and households spend…

A: Given information: Household spends $0.90 of each additional dollar they earn and save the remaining…

Q: Suppose Terese gets a sales bonus at her place of work that gives her an extra $600 of disposable…

A: Marginal propensity to consume refers to the change in the consumption expenditure that arises when…

Q: Show that if the multiplier is one, the slope of the savings schedule is one.

A: Multiplier really intends that with expansion in speculation there is ordinarily expansion in pay.

Q: What is the effect on savings of a tax cut of $15 billion? Is this inflationary or deflationary?…

A: The marginal propensity to consume (MPC) measures the change in the consumption spending of…

Q: Calculate the value of investment multiplier when MPS is given to be as 0.78

A: # A rise in the aggregate income of the economy if there is any investment taking place is…

Q: Answer the following questions and provide the necessary solutions. 1. Compute the multiplier if a)…

A: Multiplier represent how many time money multiplied in economy it depends upon the MPC , because MPC…

Q: Assuming there is no government or foreign sector, if the multiplier is 5, the MPC is 1 0.4. 2 0.5.…

A: Answer: Correct option: option (3) 0.8 Explanation: MPC is 0.8

Q: Prove that the multiplier is equal to 1/(1-mpc)

A: We know Y = C + I and C = a + bY where  Y is income C is consumption  I is investment  a is…

Q: If the MPC is 0.9 find the value of MPS using the formula

A:

Q: Which of the following has the largest multiplier asssociated with it? A) MPC = 0.6 B) MPC = 0.8…

A: The gross domestic product multiplier is the value that is multiplied with the autonomous level of…

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: Which of the following statements is TRUE?

A: The value of spending multiplier is dependent on MPC and as well as MPS

Q: Q1. Calculate the value of multiplier  when mpc is 0.5.

A: Below is the value of marginal propensity to consume: MPC = 0.5 The formula for the Multiplier: K =…

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

A: Below is the formula for the Multiplier: Multiplier = 11 - MPCMPC = Marginal Propensity to Consume

Q: Assuming there is no government or foreign sector, if the multiplier is 5, the MPC is Select one: a.…

A: Given:  There is no government sector and no foreign sector. Value of multiplier = 5 To Find : MPC

Q: If a $100 billion increase in government spending results in a $500 billion increase in real GDP,…

A: Answer to the question is as follows :

Q: If we observe that every increase in income of $120 million generates an increase in consumption of…

A: Given: The increase in income is = $120 million The increase in consumption = $80 million To Find:…

Q: If the multiplier is 10,

A: For finding multiplier we use the formula Multiplier=(1/1-mpc)

Q: Define the term multiplier effect (accelerator principle)?

A: There is some connection between the two. However, it is critical to recognise that they are…

Q: The value of marginal propensity to consume(MPC) is 0.61 Calculate the value of multiplier

A: Before preceding to the explanation and numerical part for our problem, let's first understand what…

Q: If the MPS is 0.5 then find the multiplier.

A: In Keynesian economics, the equilibrium level of output is attained at a point when the aggregate…

Q: he MPS is 0.1 and the income tax rate is 0.33 the multiplier is approximately

A: Given, Marginal Propensity to Save [MPS] = 0.1 Income tax rate = 0.33 The Marginal Propensity to…