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Exploring Macroeconomics
7th Edition
ISBN: 9781285859446
Author: Sexton, Robert L.
Publisher: Cengage Learning
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Question
Chapter 16, Problem 9P
To determine
Whether the multiplier could be written as 1 when divided by the marginal propensity to save.
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Students have asked these similar questions
If the multiplier is 5 , what is the marginal propensity to save
(MPS)?
5
0.20
0.80
0.50
The value of multiplier is 1.35
Calculate the value of Marginal propensity to save
Find the value of the multiplier when the MPS equals to 0.70
Chapter 16 Solutions
Exploring Macroeconomics
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Similar questions
- I'm doing economics homework and I'm being asked to find the multiplier when the MPS is 0.12 and MPC is 0.88. I'm trying to follow the formula and not sure where I'm getting lost.arrow_forwardThe value of marginal propensity to consume(MPC) is 0.61 Calculate the value of multiplierarrow_forwardIs the mpc in the multiplier .75? only because multiplier is 1/(1-mpc) which would make sense for .25 1-.75=.25 however what is mps?arrow_forward
- As the MPC rises, the multiplier falls does not change increases falls by .05 for each .01 increase in the MPCarrow_forwardIf the multiplier is 5, then the MPC is Answer 0.05 0.5 0.6 0.8 Question 43 In a certain economy, when income is $200, consumer spending is $145. The value of the multiplier for this economy is 6.25. It follows that, when income is $230, consumer spending is Answer $151.25. $166.75. $170.20. $175.00.arrow_forward
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