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If the MPC=0.75, what is the effect of a $60 billion increase in autonomous consumption on RGDP?
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- If MPC is zero, the level of value of investment multiplier in a two sector economy will be a. Zero b. One c. Infinite d. Cannot be determined with the given informationIf the MPC is 0, then the multiplier is A. 1. B. 0. C. infinite. D. None of the above is correct.If the ratio of MPC and MPS is 4:1 then the value of investment multiplier would be 4 True / False
- If the MPC is 0.8 and investment increases by $5 billion, the equilibrium GDP will Multiple Choice increase by $25 billion. increase by $4.0 billion. decrease by $6.25 billion. increase by $6.25 billion.The real life multiplier: a) is the same as the oversimplified multiplier formula suggests. b) is smaller than the oversimplified multiplier formula suggests. c) is larger than the oversimplified multiplier formula suggests. d) can be larger or smaller than the oversimplified formula suggests, depending on MPCIf the MPC is 0.8 and investment increases by $3 billion, the equilibrium GDP will increase by $15 billion. increase by $2.4 billion. decrease by $3.75 billion. increase by $3.75 billion.
- If the MPC is 0.67, then the oversimplified multiplier is Group of answer choices A)7.60. B)6.70. C)3.00. D)33True or False: If consumption expenditure in a medium sized economy is $1.5 (trillion) while disposable income is $2.0 (trillion), the marginal propensity to save from disposable income must be equal to 25%.If the multiplier is 4 and real GDP increases by $520 billion, the increase in investment spending must have been Group of answer choices $120 billion. $140 billion. $110 billion. $130 billion.
- net taxes were lowered from $5000 to $1000, the MPC is .75, and autonomous consumption spending is $10,000, by how much would consumption increase?If the MPC in an economy is 0.75, government could close a recessionary expenditure gap of $300 billion by cutting taxes by Multiple Choice $400 billion. $300 billion. $75 billion. $225 billion.If the MPC is .75, the government spending multiplier is