The multiplier is Multiple Choice 1/(1 MPC. 1/MPS. 1/(1- MPS). 1/MPC.

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: (Multipliers) Suppose investment, in addition to having an autonomous component, also has a…

A: It has been stated that investment has a component that varies directly with the level of real GDP…

Q: MPC = .75   What is the value of the multiplier?

A: MPC=0.75 MPS=1-0.75         =0.25

Q: An increase of $100 million in investment leads to a rise of $500 million in national income. Find…

A: The information being given is as follows:- Rise in investment = $100 million This change induces a…

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: 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: Find the value of multiplier when MPC is equals to 0.70

A:

Q: Suppose that an initial $10 billion increase in investment spending expands GDP by $10 billion in…

A: The spending multiplier is given by 1/(1-mpc). a) marginal propensity to consume is the ratio of…

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: Find multiplier if MPC is 0.2

A: Given: MPC is 0.2

Q: If the multiplier is 5, then the MPC is   0.05 0.5 0.6 0.8

A: Macroeconomics discusses economic behavior in an aggregate manner. It explains the economy as a…

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: 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: Japan increases investment by 12 billion. The magnitude of multiplier is 6. Calculate MPC

A: Rise in investment = 12 billion Multiplier = 6 MPC = ?

Q: Calculate the Multiplier when the MPC is 0.97

A: Generally in the given question MPC is stated as = 0.97 Value of the multiplier needed to be…

Q: In the first economy (with MPC = 0.5), the $20 billion increase in investment causes equilibrium…

A: There are two closed economy countries  1st with 0.5 MPC and $20 billion Increases in Investment2nd…

Q: If the marginal propensity to consume (MPC) is .75 for a closed economy, what is the multiplier…

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

Q: How is it possible for investment spending to increase even in a period in which the real interest…

A: The macroeconomic tools and policies have their relevant aspects and circumstances that indulge in…

Q: In an economy the value of MPS is given as 0.72  Calculate the value of multiplier

A: We are given that the value of Marginal propensity to save is 0.72 We have to calculate the value of…

Q: Find value of the multiplier if MPC = 0.5 MPS = 0.35

A: Marginal propensity to consume (MPC) is the ratio of the additional consumption to the additional…

Q: (Simple Spending Multiplier) For each of the following values for the MPC, determine the size of the…

A: The simple spending multiplier indicates how much the total spending increase, given a change in…

Q: Calculate the value of multiplier if MPS is 0.43

A: The information given to us is as follows:- Marginal propensity to save = 0.43 We need to calculate…

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: Aggregate expenditure is 790. Income is 730 and consumption is 720, income increases to 750 and…

A: “Hey, since there are multiple subpart questions posted, we will answer the first three subpart…

Q: What would happen to the multiplier if the MPC were to fall? The multiplier would stay the same The…

A: Multiplier refers how much time money multiplied in market it depend on the level of consumption ,…

Q: An economy is currently in equilibrium. The following figures refer to elements in its national…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

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: 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: In an economy, income rises by $10,000 as a result of rise in investment Expenditure by $1000.…

A: The given information is as follows:- Rise in income = $10,000 Rise in investment expenditure =…

Q: If the current value of GDP is $13.28 trillion and the government is planning to increase spending…

A: Dear student since the value of multiplier is not mentioned in the question, I have solved it with…

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

A: The concept of an investment multiplier states that every increase in public or private investment…

Q: An Economy has no imports or taxes, the MPC is 0.90 and real GDP is $12 trillion. If businesses…

A: Answer: Given values: MPC(marginal propensity to consume)=0.90GDP=$12 trillionIncrease in business…

Q: Explain briefly how spending can multiply, and then calculate the spending multiplier when the MPC…

A:

Q: The multiplier for the economy in the above diagram: a. is 3 b. is 4.8 C. is 4 d is 5.2

A: The measure that depicts the final value of goods and services being produced in a year during an…

Q: If the value of multiplier is 32 find the MPC and MPS.

A:

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

A: MPS stands for marginal propensity to save and MPC stands for marginal propensity to consume.

Q: Investment multiplier is given as 1.42 Calculate the MPS and also MPC

A: # We know that the investment multiplier is given as:- Investment multiplier = 1 / MPS Also the…

Q: As the MPC rises, the multiplier     falls     does not change     increases     falls by .05…

A: MPC is the marginal propensity to consume which is the percentage change in income spent on…

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: In an economy investment in increased by $10 billion. As a result income rises by $50 billion. What…

A: This multiplier is called as the Keynes Investment Multiplier and measures the relationship between…

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: 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: 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…