Answered: In Australia, in the year of 2014 the…

Business

Economics

In Australia, in the year of 2014 the value of MPS was 0.61 What would have been the value of MPC in the same year?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 7WNG

See similar textbooks

Related questions

Q: For the following question , please indicate whether current GDP of the United States will be…

A: Gross domestic product is the aggregation of the value of goods and services produced in the…

Q: Q5. Suppose that an auto company owned entirely by German citizens opens a new factory in Johor. a.…

A: Gross Domestic Product (GDP) is an economic tool that measures the financial performance and health…

Q: Define the term Net Investment?

A: Investment: In economics, the term investment refers to the purchase of commodities that will be…

Q: Explain how each of the following will affect the consumption and saving schedules (as they relate…

A: HI Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: What is the level of saving if: The MPC equals .9, disposable income rises from $ 800 to $ 900, and…

A: The marginal propensity of consumption and savings is the proportion of the disposable income that…

Q: That part of income which is either consumed or saved by all the households in an economy is called…

A: Savings refer to the part of income set aside to use in the future. Consumption spending refers to…

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

A: Given : MPC = 0.9 Increase in investment by $11 billion

Q: If personal taxes are $400 billion and disposable income is $4,000 billion, then what does personal…

A: Hi, thanks for the question. As per the guidelines we are allowed to attempt the first question. If…

Q: If personal taxes are 400 billion and disposable income is 4,000 billion, then what does personal…

A: Meaning of Disposable Income: The term disposable income also refers to net income or disposable…

Q: Between March and May of 2007, Africa's real disposable income increased from 61.3 billion to 61.9…

A: Marginal propensity to consume ration of the change in the level of consumption to change in the…

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: Investment increases by $200 million and the value of MPC is 0.75. What would be the total increase…

A: Total increase in spending = multiplier * increase in spending Multiplier= 1/(1-MPC)…

Q: Consider the following information on aggregate income, consumption expenditure, and planned…

A: Gross domestic Product is defined as the monetary value of all the final finished goods and service…

Q: Explain how each of the following will affect the consumption and saving schedules (as they relate…

A: Consumption Schedule The consumption schedule implies the relationship between current disposable…

Q: calculate the value of MPS when MPC is given to be as 0.37

A: # The relationship between MPS and MPC is given to be as :- MPS + MPC = 1

Q: Given the following: consumption = 450, investment = 100, government expenditure = 50 and net export…

A: Country's GDP is calculated by the following formula, = Consumption + investment + government…

Q: The value of MPC is 0.76 Calculate the value of MPS

A: We are given that:- Marginal propensity to consume = 0.76 Also we know that the sum of MPS and MPC…

Q: Calculate private investment per capita for each year from 2003-2020. What are the per capita…

A: Private investment is the capital accumulation by the private sector. Private investment per capita…

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: Calculate the value of MPC. The value of MPS is given to be as 0.95

A: # Sum of MPC and MPS together taken gives 1 MPC+MPS = 1

Q: Calculate the value of MPC when MPS Is 0.41

A: # MPC measures the degree of change in consumption with respect to income and on the other hand MPS…

Q: Calculate the value of MPS when the value of MPC is 0.13

A: The formula for MPS is given as:- MPS = 1 - MPC

Q: Historically, the change in real GDP during recessions has been a. mostly a change in investment…

A: Real GDP - It is the measure that reflects the inflation adjusted value of goods and services…

Q: Given the following: consumption = 300, investment = 150, government expenditure = 50 and net export…

A: GDP = consumption + investment + government expenditure + net exports

Q: Calculate income if consumption is $120 million and Savings is $66 million.

A: Given data: Consumption is $120 million. Saving is $66 million.

Q: suppose the value of the MPS is 0.92 find the value of the MPC

A: According to the given question The formula when we have to calculate the MPC when MPS is given…

Q: Which component of GDP will increase if disposable income increases

A: The Gross Domestic Product (GDP) measures the market value of all the final goods and services…

Q: Graphically illustrate the aggregate consumption and saving functions. Explain

A: The consumption is the using of the income and resource to purchase the commodities and services…

Q: Explain some reasons why consumption spending and gross private domestic investment spending are so…

A: GDP (Gross Domestic Product): It refers to the total of market value of all produced final goods and…

Q: Calculate the value of MPC given that:- MPS = 0.55

A: # We get the relationship between MPC and MPS as:- MPS + MPC = 1

Q: That part of income which is either consumed or saved by all the households in an economy is called

A: Given data: That part of income which is either consumed or saved by all the households in an…

Q: Calculate the expected change in GDP if the federal government announces it will spend an additional…

A: Change in the government expenditure=$80 million Marginal propensity to consume(MPC)=0.6 Change in…

Q: The following provides data for an economy in a certain year. Consumption expenditures $1,000…

A: "GDP indicates the monetary or market value of all the final goods and services produced in an…

Q: Calculate income if consumption is $120 million and Savings is $66 million

A: The information being provided to us is as follows:- Consumption = $120 million Saving = $66 million…

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

Q: Based on the following table Private consumption expenditure (C) Gross private investment…

A: ‘Disposable income’ refers to the money left over from the total income after paying all taxes. It…

Q: Calculate the value of MPC when MPS is given to be as 0.82

A: # The sum of bothe MPS and MPC is given to be as 1 MPS + MPC = 1

Q: Find the value of MPC if the value of the MPS is given as 0.33

Q: Calculate the value of multiplier in an economy where LRR is 37%

A: The information being given is:- Legal reserve ratio in the economy = 37% = 0.37 Multiplier = ?

Q: Calculate imports in 2020, if exports in 2020 were $21,000 and the net exports is $11,500

A: The information being given is as follows:- Exports in 2020 = $21,000 Net exports = $11,500 We have…

Q: What will be the value of exports if net exports is $1000 million and imports are $3300 million

A: The information being given is:- Net Exports = $1000 Imports = $3300 We have to calculate value of…

Q: Q2 In each of the following cases, determine the effect of each case on GDP and its components in…

A: We know that Aggregate Demand is the sum total of consumption expenditure, investment expenditure,…

Q: When consumers’ expect that future prices will increase, it is expected that current…

A: Meaning of Consumer Welfare: The term consumer welfare refers to the situation under which an…

Q: Find the value of MPC if MPS is 0.4.

A: Given: Marginal propensity to save = 0.4

Q: The equation for the aggregate consumption function is

A: The consumption function can be written as follows:

Question

In Australia, in the year of 2014 the value of MPS was 0.61

What would have been the value of MPC in the same year?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Calculate the following Consumption = ? Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion.
Calculate the value of MPC when MPS Is 0.41
Calculate the value of MPC given that:- MPS = 0.55
Calculate the value of MPS when the value of MPC is given to be as 0.25
In the graph you've just made, what is Tom's net investment in 2020? Tom's next investment is $ _____.
The value of MPC is 0.76 Calculate the value of MPS
Calculate the value of MPC. The value of MPS is given to be as 0.95
If there is an increase in the personal income tax rate, and people do not receive a pay increase, then disposable income will... decrease or increase Therefore, we can expect consumption spending to... decrease or increase and private saving to..... increase or decrease .
Q2.In each of the following, calculate private, public and national savings and the national savings rate. Given that: Household savings = 200 Business savings = 400 Government purchases = 100 Government transfers = 100 Tax collections = 150 Gross Domestic Product = 2,200
Suppose Rob, an avid golfer, spent a total of $3000 on green fees for the 100 rounds of golf he played in 2018 and a total of $2800 on green fees for the 100 rounds of golf he played (on the same courses) in 2019. Rob's nominal consumption of golf in 2019 was _____ his nominal consumption level in 2018 and his real consumption of golf in 2019 was _____ his real consumption level in 2018.
Find the value of MPC if MPS is 0.4.
Historically, the change in real GDP during recessions has been a. mostly a change in investment spending.b. mostly a change in consumption spending.c. about equally divided between consumption and investment spending.d. sometimes mostly a change in consumption and sometimes mostly a change in investment.