roup of answer choices As marginal propensity to consume (b) decreases, the spending multiplier remains the same. As marginal propensity to consume (b) increases, the spending multiplier increases. As marginal propensity to consume (b) decreases, the spending multiplier increases As marginal propensity to consume (b) increases, the spending multiplier decrea

Q: Q.1.9 If a household’s income falls from R12 000 to R10 000, and its consumption falls from R9 500…

A: MPC = change in consumption/change in income MPC = ∆C/∆Y Change in income = R(12,000-10,000) =…

Q: 140 120 100 80 60 40 20 0. 40 60 80 100 12 -20 -40 income: Q 01. Given this diagram of Consumption…

A: Answer: Marginal propensity to consume: it refers to the ratio of change in consumption and change…

Q: If the MPC (Marginal Propensity to Consume) value of an economy is 0.8 then... a) Multiplier = 1.25…

A: MPC = 0.8 Multiplier = 1/(1 - MPC) Multiplier = 1/(1 - 0.8) - 1/0.2 = 10/2 = 5 The multiplier is the…

Q: Suppose that when disposable income decreases by $2,000, consumption spending increases by $1500.…

A: Marginal propensity to consume is defined as the change in consumption divided by change in income.

Q: An increase in the marginal propensity to consume cause an increase in which of the following?…

A: MPC is Marginal Propensity to consume means an increase in i=consumer income that is spent on the…

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: Hello, I would like help on those assignments. Thank you!

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: If the marginal propensity to consume (MPC) equals 0.25 and the government increases spending by…

A: the marginal propensity to consume is a metric that quantifies induced consumption, the concept…

Q: Aina receives a tax refund of P800. He spends P600 and saves P200. Aina's marginal propensity to…

A: Marginal propensity to consume is the change in consumption with change in income.

Q: The value of the Multiplier decreases in only one of the following cases: O An increase in the…

A: Multiplier states the change in the variable due to  change in autonomous Variable.In terms of…

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: What happens if there is a rise in the marginal propensity to consume (MPC) a) Lowers the value of…

A: In an economy, any change in the proportion of consumption from the given income has a multiplier…

Q: If a household’s income falls from R12 000 to R10 000, and its consumption falls from R9 500 to R8…

A: Marginal propensity to consume is the slope of the consumption function. Consumption refers to the…

Q: The marginal propensity to save is given by  MPS = 0.5 - 0.2Y-1/2 . There is dissaving of GH¢3.5…

A:

Q: The multiplier is the ratio of the change in ________ to a change in ________. Select one: a. the…

A: The multiplier (K) can be calculated using the following formula.

Q: When marginal propensity to consume is 0 the value of investment multiplier will be 1 True/False

A: We are given that the value of Marginal propensity to consume is 0 MPC calculate the change in…

Q: Marginal Propensity to Consume = 0,7, so Marginal Propensity to Save: Select one alternative:…

A: It is given that MPC=0.7

Q: When investment multiplier is 1, the value of marginal propensity to consume is 0

A: # We know that the investment multiplier is given as:- = 1/ ( 1-MPC)  And also it can be written as…

Q: Suppose the marginal propensity to consume equals 0.7 (i.e., c1 = 0.7). Given this information,…

A: Aggregate equilibrium in closed economy is given by , Aggregate demand = Aggregate Output  where,…

Q: If the marginal propensity to consume is 0.5, individual autonomous consumption is P10,000, and…

A: Here, given information is: MPC (b)= 0.5 Autonomous consumption (c)= P10,000 disposable income (Y)=…

Q: Choose the correct answer: . If consumption is $25,000 when income is $26,000, and consumption…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: The collective market capitalization of stock in American companies increased from $34 trillion at…

A: Answer: The market capitalization of stock at the end of 2019 = $34 trillion The market…

Q: n an economy investment increases by 120 crores. The value of multiplier is 4. Calculate the…

A: Increase in investment = 120 crores. Value of multiplier = 4

Q: If you save $20 when you experience a $200 rise in your income: (A) your marginal propensity to save…

A: Marginal propensity to save (MPS): - it is a fraction of total income that a person saves.

Q: If the Marginal Propensity to Consume (MPC) is 0.6, then the expenditure multiplier must be: Group…

A: Aggregate demand is the total or final demand for goods and services in the country at a given…

Q: Hello, I sent this assignment an the last option could not be solved. Can you help me with letter D…

A: d.The marginal propensity to consume is the metric that quantifies the relationship between the…

Q: 1. The Marginal Propensity to Consume (MPC) equals: A. 0.70 B. 0.75 C. 0.80 D. 0.85

A: MPC stands marginal propensity to consume which define as the proportion of an aggregate raise in…

Q: If a household’s income falls from R12 000 to R10 000, and its consumption falls from R9 500 to R8…

A: An individual earns income when serving his services in the market as labor, worker, or employee. An…

Q: If the marginal propensity to consume (MPC) increases. A. The MPS increases B. The multiplier…

A: here we can find the correct answers as follow-

Q: Sum of average propensity to consume and marginal propensity to consume is always equal to 1.  True…

A: # Marginal propensity to consume is given by the ratio of change in consumption and change in…

Q: Assume that the Marginal Propensity to Consume (MPC) is 0.8. If the multiplier effect is taken into…

A: When Government expenditure will decreases it decreases the consumption as well so it reduce the…

Q: If a $1000 increase in disposable income causes consumer spending to rise by $700, what is the…

A: Here, given information is: Change in disposable income (∆Y): $1,000 Change in consumer spending…

Q: If a household’s income falls from R12 000 to R10 000, and its consumption falls from R9 500 to R8…

A: Marginal propensity to consume is the proportion of the disposable income that a person wants to…

Q: Consumption ($) Disposable Income ($) 1,200 3,200 2,100 4,000 3,000 4,800 Calculate the Marginal…

A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption,…

Q: income, defined as the difference between income Y and taxes T. You observed that, after an increase…

A: Marginal propensity to consume states change in consumption due to change in income we can find the…

Q: What is the Marginal Propensity to Consume (MPC) when income and consumption increase to 450 and 315…

A: MPC = 0.5

Q: If Andrea’s disposable income increases from $600 to $700 and her level of personal consumption…

A: Marginal Propensity to Consume (MPC) - If the income of a consumer increases by a dollar, then how…

Q: Allie has a marginal propensity to consume of 0.75. What does this mean?    a. He's spending more…

A: When an individual earns income from making production activities, he pays some amount of income tax…

Q: As shown in Exhibit 2, the marginal propensity to consume (MPC) is:   Group of answer choices 0.33.…

A: Marginal propensity to consume (MPC) refers to the value of additional consumption due to increase…

Q: If the marginal propensity to consume is 0.6 then the marginal propensity to save must be 0.4.   1.…

A: Given information: Marginal propensity to consume= 0.6 Marginal propensity to consume (MPC) is the…

Q: If the investment multiplicator equals 1, it means that: Select one alternative: MPC = 2 MPC…

A: Macroeconomics analyzes the economy as a whole. It studies aggregate economic concepts such as…

Q: What happens if there is a rise in the marginal propensity to consume (MPC) a) Lowers the value of…

A: The marginal propensity to consume shows the ratio of change in consumption and change in income. In…

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…