What's the tax multiplier if MPC = 0.75? %3D Select one: a. -4 b. -3 с. 3 d. 0.33

Q: If the consumption function is C - $250 +0.75(Y), the MPS is__, the government spending multiplier…

A: Here, we calculate the given as follow;

Q: Suppose MPC is 0.8. If government purchases increases by $10ce and cuts taxes by $50B, how much the…

A: Government spending multiplier = 1 / [1 - MPC] Tax multiplier = MPC / [1 - MPC]

Q: In an economy such that: C = 200 + 0.80 (Y- T) I=40 - 20 R X 30 - 0.05 Y T= 100 M =0.20 Y- 10 R M =…

A: The goods market equilibrium is indicated at a point where real GDP is equal to aggregate…

Q: Assume MPC=0.75. If an initial fiscal restraint of $100 billion is desired, by how much must Round…

A: Government spending usually denotes the overall amount of the money that the government usually…

Q: Note Dear student, There are multiple sub parts in the question that you have asked. I am answering…

A: Answer: Since we only answer up to 3 sub-parts, we’ll answer the next 3 sub-parts (d,e,f). Please…

Q: real GDP = (Change in Taxes) X Change in equilibrium (Tax Multiplier) Change in equilibrium real GDP…

A: Initial change in the tax or investment causes multiple change in final income. The value of…

Q: What is true about the balanced budget​ multiplier?   A. The balanced budget multiplier is positive…

A: The balanced budget multiplier is the budget situation where the spending of the government and the…

Q: If the MPS is 0.4 and tis 0.1, then the tax multiplier is about -1.36. Select one: O True O False

A: Tax multiplier: - it is a fraction that shows the magnitude of the change in national income due to…

Q: If the tax multiplier is -5 and taxes are reduced by $200 billion, output falls by $1000 billion.…

A: Given Tax multiplier = -5 Reduction in Taxes = 200 Billion$ with reduction in taxes there is…

Q: If the MPC is 0.5, the tax multiplier is Select one: a. -1 b. -2.5 C. -1.67 d. -2

A: Tax Multiplier:- The tax multiplier is a metric that evaluate how much a tax reform affects…

Q: If the MPC is 0.9, then the tax multiplier is a. -0.1 b. -1.11 c. -9 d. -10

A: Keynesian economics is known as demand-side economics because according to Keynesians economics the…

Q: A. If your MPC = 0.6 and government spending (G) increases by $800. What will happen to the…

A: a. MPC = 0.6 ∆G=$800

Q: Suppose the government enacts a stimulus program composed of $400 billion of new government spending…

A: It is given that the government increases government spending by $400 billion and it is also given…

Q: n a closed economy such that: C = 100 + 0.8 (Y – T)             Md = 0.25 Y - 50 R I = 700 - 50 R…

A: The basis of the IS-LM model is an analysis of the money market and an analysis of the goods market,…

Q: If the MPC is 0.9, the the government spending multiplier is:  a. 0.1 b. 1.11 c.9 d. 10

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: In the country A , autonomous consumption (CA) is 100, marginal propensity to consume (CY) is 0.5,…

A: The equilibrium is established: Y= C+I+G.

Q: help me, please

A: Given values, C = 100 + 0.8Yd G = 800 T = 500 I = 200

Q: Consider an economy with the initial equilibrium income level of $1000 and the consumption function…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Given the following model for an economy C = 100 + 0.8Yd G = 800 T = 500 I = 200 d)      Find…

A: d. The Tax multiplier can be calculated with the help of the MPC and the MPS in the economy. The MPC…

Q: 19. If MPC = 0.6, find the tax multiplier. If taxes fall by 50, what will be the change in Y? Will Y…

A: Given information is: MPC= 0.6 Y1= 250 To find: tax multiplier, change in Y, and new Y2.

Q: If the tax multiplier is -4 and taxes are reduced by $35 billion, output falls by $140 billion.…

A: The data presented in the question above is:- Tax multiplier = -4  Reduction in taxes = $35 billion…

Q: Choose the correct answer: .Taxes are reduced by $50 billion and income increases by $1,000…

A: Tax multiplier indicates impact of change in taxes on the entire income of the economy. In…

Q: Assume that MPC=0.9 and t=.2. The tax multiplier is about -3.2 O -2.5 -9 not enough info is given. O…

A: Tax multiplier refers to the proportionate value according to which a change in taxes will change…

Q: suppose the government wishes to illuminate recess or a gap of 100 billion in the MPC is .075 how…

A: Given, Gap = 100 billion MPC = .075

Q: Assuming T = 0, for the following three consumption functions, i) identify the mpc and mps, iii) tax…

A: Marginal propensity to consume (MPC): - it is a fraction of the change in disposable income that is…

Q: There will be no crowding-out effect when the government increases spending and the planned…

A: In economics, the crowding-out effect refers to the phenomenon of an increase in government spending…

Q: If taxes depend on income and the MPC is 0.8 and tis 0.4, the tax multiplier is Select one: O a.…

A: Given: The MPC is = 0.8 The tax T is = 0.4 To Find: The tax multiplier:

Q: A) The aggregate consumption function of Ekonland is known to be C= a + bYa and the tax structure is…

A: 1)  Y = C + I + G + X - M Y= a + b(Y - T) + I + G + X - M Y = a + b(Y - TO - tY) + I + G + X - M Y =…

Q: Question: Given the following model for an economy C= 100 + 0.8Yd G= 800 T= 500 T= 200 d) Find Tax…

A: Given, C = 100 + 0.8Yd G = 800 T = 500 I = 200

Q: 11. If the marginal propensity to consume is 0.5, the tax multiplier is: (A) -2.5. (B) -2 (C) -1 (D)…

A: Given:  MPC=0.5

Q: In an economy such that: C = 200 + 0.80 (Y – T)           Md = 0.20 Y - 10 R I = 40 - 20 R…

A:

Q: Calculate the government spending multiplier and the tax multiplier if the MPC is 0.6. Show your…

A: The government spending multiplier is calculated as follows.

Q: 3.5 If real GDP is $300 billion below potential GDP and the tax multiplier equals -1.5, then how…

A: 3.5) Given:real GDP=$300 billionTax multiplier=-1.5

Q: TRUE/FALSE  We argued that the tax multiplier is higher in absolute value than the government…

A: Multiplier is one of the major economic tool to understand the change in one variable due to the…

Q: If disposable income increases from $100 to $200 and consumption increases from $100 to $190 then…

A: Tax multiplier: The tax multiplier is the effect of the changes in aggregate demand from changes in…

Q: Consider the following consumption function: C (Y)=0.8(Y-T) where Y represents income and T…

A: We know that an economy is in equilibrium when: Y = C + I + G  Hence we put values and get the Y to…

Q: If the MPS in an economy is 0.2. What is the tax multiplier? Group of answer choices a. 4 b. 5 c. -4…

A: Tax multiplier = - (1 - MPS) / MPS = - (1 - 0.2) / 0.2 = - 0.8 / 0.2 = - 4

Q: What is the effect of an increase in taxes when the economy is above full​ employment? What is the…

A: The aggregate demand curve or AD curve shows different combinations of price and output where both…

Q: In an economy where the MPC is 0.7, the proportional tax rate is 0.25 and the marginal propensity to…

A: Given :  Marginal Propensity to Consume (MPC) = 0.7 Proportional Tax = 0.25 Marginal Propensity to…

Q: Assume that MPC=0.9 and t=.2. The gov. expenditure multiplier is about 3.5 10 2.5 More info is…

A: The spending multiplier refers to the ability to generate output with a marginal change in any of…

Q: Decide true or false if it is false why it is false ? 1-When the government collects taxes in lump…

A: The impact of a change in income following a change in government spending is called government…

Q: Let j be 0. Suppose that the government increases expenditures by $100 × (1 + 0.01j) billion while…

A: Fiscal policies are the policies used by governments to attain specific economic goals. The two…

Q: Suppose that in the given economy the tax multiplier is equal to -4 and the government increases its…

A: Crowding Out

Q: Assume MPC 0.75. If an initial fiscal restraint of $100 billion is desired, by how much must Round…

A: The measure that depicts a portion of an additional dollar being spent or consumed of income of a…

Q: Suppose the MPC is 0.85. If government purchases increase by $10 billion and net taxes fall by $10…

A: MPC = 0.85 --------------------- Government spending multiplier = 1 / (1-MPC) => Government…

Q: Explain carefully why the tax multiplier is negative and why it is smaller in absolute value than…

A: There exist an inverse relationship between taxes and the level of output or GDP. This is because a…