If the shift in the C+1+(X-IM) in (Figure 1) was caused by a 80 dollar increase in investment, then the multiplier is Select one: a. 5. b. 2. CO. d. 3.
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: the multiplier coefficient is 5, by what amount does real GDP output have to increase or decrease in…
A: Aggregate expenditure is sum of consumption spending, investment spending, government purchases and…
Q: Suppose that the linear equation for consumption in a hypothetical economy is C = 40 + .8Y. Also…
A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first…
Q: If C = 150 + .6Y and I = 50 then a. how much is autonomous consumption,MPC,MPS,Equilibrium…
A: In Keynesian economics, the change in aggregate demand is able to affect the output level and the…
Q: Because of the multiplier, a one-time change in expenditure will generate more additional real GDP…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: If mpc = 0.9, the multiplier equals 10. %3D O True O False
A: Given MPC=0.9 We know that the Keynesian multiplier: k=11-mpc
Q: Find the value of MPC when multiplier is stated as 0.97
A: MPC or the marginal propensity to consume is the percentage of consumer's income that the consumer…
Q: Fill in the blanks: Suppose when disposable personal income increases from $1,000 to $1,500,…
A: Saving = income - consumption. Marginal propensity to consume = change in consumption/ change in…
Q: (ii) Suppose that f(x,y) = xy. Find the maximum value for f(x,y) if x and y are constrained to sum…
A: Lagrange function helps to solve constraint optimization problems.
Q: If planned investment spending increases by $6 million, and consumers are likely to spend 80¢ for…
A: According to all the given information, the consumer is likely to spend 80¢(80 percent) per dollar,…
Q: If the value of investment multiplier is 1 what will be the value of MPC
A: The information being provided is:- Investment multiplier = 1 MPC = ? We have to find the value of…
Q: 5) If an increase in investment spending of $50 million results in a $400 million increase in…
A: Multiplier shows the change in the one factor to a change in the other related factors. It shows the…
Q: 47)Which one is TRUE? Select one: a. The larger the MPC, the smaller the multiplier. b. The…
A: The formula for multiplier stated in the textbook overstates the real world multiplier when we take…
Q: Question 52 ( Which of the following combination will have the highest multiplier? Mpc - 0.90 t=…
A: The economies tend to have various entities, which are in the form of households, firms, investors,…
Q: If the mpc = 0.9, and Ip increases by $1,000 (meaning a change in Ip of $1000), then equilibrium…
A: Hi. Since there are multiple questions, we will solve only the first one.
Q: The following information is a three sector economy of a Consumption function (C) = 310 + 0.6Yd…
A: The expenditure approach calculates GDP as total spending on the physical volume of final goods and…
Q: Assume that Consumption is C = c(1-t)Y; Investment / = -bi; Net Exports NX = x,YW + xR – m,Y + m,R…
A: Aggregate equilibrium in economy is achieved where aggregate demand in economy is fulfilled by…
Q: 600 600 500 150 650 -50 700 700 575 150 725 -25 800 800 650 150 800 900 900 725 150 875 25 1,000…
A: (f). we already have autonomous consumption of $50 and MPC is 0.75. Initially planned expenditure is…
Q: If MPC is given as 0.8, a rise in disposable income from $250m to $300m will 1. decrease consumption…
A: Disposable income is total personal income minus personal current taxes. Here, we calculate the…
Q: 1. Show that equilibruim level of income is at a point where consumption plus investment schedules…
A: Ques 1) Y = C+ I , shows the aggregate expenditure . The Equilibrium is the point at which aggregate…
Q: An economy is characterized by the following desired consumption and investment functions: C = 543 +…
A: Note: There are multiple sub parts for the given question, hence we shall answer the first three for…
Q: If Multiplier is 1/1-MPC and MPS+MPC=1, MPC= Marginal propensity to consume and MPS= marginal…
A: The economics as a study is based upon the idea that the societies tend to have a limit to the…
Q: Suppose Terese gets a sales bonus at her place of work that gives her an extra $600 of disposable…
A: Marginal propensity to consume refers to the change in the consumption expenditure that arises when…
Q: Show that if the multiplier is one, the slope of the savings schedule is one.
A: Multiplier really intends that with expansion in speculation there is ordinarily expansion in pay.
Q: Complete the following table by completing the multiplier for each MPC listed MPC - 0.17 MPC -…
A:
Q: Figure 9.1 TE 45° TE=C+I2+G+(X-IM) TE:=C+I+G+(X-IM) AT=100 Y1 Y2 f the $100 increase in investment…
A: Income: It refers to the money that people gets every month for the work they do. The more income of…
Q: If the ratio of MPC and MPS is 4:1 then the value of investment multiplier would be 4 True / False
A: # We know that the sum of MPC and MPS is always 1 That is:- MPS + MPC = 1
Q: If a $568 increase in investment spending increases income by $568 in the first round of the…
A: here we calculate the increase in income by using the given information so calculation as follow-
Q: Prove that the multiplier is equal to 1/(1-mpc)
A: We know Y = C + I and C = a + bY where Y is income C is consumption I is investment a is…
Q: Is the relationship between changes in spending and changes in real GDP in the multiplier effect a…
A: Spending are broadly classified into three parts. I) Consumption Spending II) Investment Spending…
Q: Explain the multiplier intuitively. Why is it that an increase in planned investment of $100 raises…
A: Multiplier is when some variables changes due to some other variables. For example money multiplier.…
Q: The multiplier process depicted in the following table is based on an MPC of 0.75. a. Recompute the…
A: Spending Cycles Change in Spending during cycles Cumulative increase in spending 1 $100 $100 2…
Q: Suppose that Mr. Ali's disposable income declined from 15 000 TL to 12 000 TL. Given that Mr.Ali's…
A: Marginal Propensity to Consume is the proportion of an increase in income that gets spent on…
Q: Consider the following closed economy model: C=500+0.2(Y-T) I=200 G=100 T=100+0.1Y Derive the…
A: Multiplier = 1.22
Q: Suppose that investment demand increases by $100. Assume that households have a marginal propensity…
A: MPC is 80% which symbolizes that a rise of 1$ in the income will lead to a $0.80 rise in…
Q: What is the value of the MPC? b. WhatisthevalueoftheMPS? c. What is the value of the multiplier
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: n a simple economy consumption is specified as C = 200 + 0.75 Yd. What is the multiplier for this…
A: The ‘Keynesian Multiplier’ is an economic theory that emphasizes that an increase in private…
Q: In the country of Guadelope, in 2019 GDP increased by $8 million. In the same year, the level of…
A: Multiplier shows the change in investment due to change in income , so here we calculate the value…
Q: If the consumption function is given by C=20+3/4 Y then the value of multiplier will be???
A: According to the given question In simple words we can say that the consumption function is an…
Q: In an economy income increases by 10,000 as a result of a rise in investmen expenditure by 1,000.…
A:
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- 10x + 154 13 07 = 3000 In a certain country, the government spends the total yearly budget for infrastructure renovation according to the following principles: En at th projects which received funding the year before get 20% less funding than the previous year; En = C. 2^+ an additional € 20 million is assigned to new infrastructure renovation projects. ● For the year 2023, a total of € 150 million is spent on infrastructure renovation. a) Define an appropriate sequence to describe the total yearly budget for infrastructure renovation. Write down a recursive equation with initial condition for this sequence and find the general term. b) c) Describe in words the evolution of the yearly budget for infrastructure renovation. How much will be spent on infrastructure renovation over the period 2023 to 2032 (including both start and end year)? d) A new government wants spending on infrastructure renovation to evolve towards € 160 million per year. In order to do so gradually, it decides to…(bIn an output maximization problem, the output f(x1, x2) = xx will be maximized subject to the budget constraint 2x, + 4x2 = 40 when x, = 10 unit and x2 = 5 unit. In this case, the Lagrange multiplier is 250 unit. What does this value of multiplier imply? %3DWhen AP L is positive but declining, the MP L could be (i) declining (ii) zero (iii) negative or (iv) any of them. Which one is the correct alternatives? Explain with diagram.
- I need help with question 4.4.3AVC = 10-0.03q+0.00005q^2 ATC = 10-0.03q+0.00005q^2 +100/q and MC = 10-0.06q+0.00015q^2 Answer the following questions in EXCEL:1 At what value of q is AVC at its minimum? (Hint: The easiest way tocalculate this value is to solve AVC - MC = 0 for q.)2 At the above output level what value does AVC take?3 If the forecasted price of the firm's output is $10 per unit:a How much output will the firm produce in the short run?b How much profit (loss) will the firm earn)?4 If the forecasted price is $7 per unit:a How much output will the firm produce in the short run? (Keep only2 decimals)b How much profit (loss) will the firm earn)? (Keep only 2 decimals)3. Sam works for Engineering Enterprises, and he is trying to analyze his cash flow throughout the following time period: Cash flows in year 1 -4 have been at a steady $1M/year. However due to the COVID pandemic in year 5 the company had to completely shut down its operations for a year. In year 6 the company was able to maintain the revenue of $1M, however there was a 15% decline in sales in the following periods. a) Draw the cash flow diagram b) Based on PW analysis and an interest rate of 5%, overall, how did the company perform during the 8-year study period? c) Convert your answer to AW based on your answer from part b)
- Can you please solve 8 e knowing that the awnser to 8 d is found written below. Please also see attached question Awnser to 8d: U = (X1)^(1/2)*(X2)^(1/3) We have budget constraint as, m = P1*X1+P2*X2 Let's set up the Lagrange maximizing function as below. L = U(X1, X2) - λλ(P1X1+P2X2-m) L = (X1)^(1/2)*(X2)^(1/3)- λλ(P1X1+P2X2-m) Finding first order condition, dL/dX1 = (0.5)*(X2)^(1/3)/(X1)^(1/2)-λλP1 dL/dX2 = (1/3)*(X1)^(1/2)/(X2)^(2/3)-λλP2 Equating these equations to zero to get, (0.5)*(X2)^(1/3)/(X1)^(1/2)-λλP1 = 0 (1/3)*(X1)^(1/2)/(X2)^(2/3)-λλP2 = 0 (0.5)*(X2)^(1/3)/(X1)^(1/2)/P1 = (1/3)*(X1)^(1/2)/(X2)^(2/3)/P2 (3/2)*(X2/X1) = P1/P2 X1 = (1.5P2*X2)/P1 dL/dλλ = P1X1+P2X2-m=0 P1X1+P2X2 = m P1*(1.5P2*X2)/P1+P2X2=m 2.5*P2X2=m X2 = 0.4*m/P2 X1 = 0.6*m/P1 Hence, Marshallian demand function for good q and good 2 respectively are X1 = 0.4*m/P1 X2 = 0.6*m/P2The only fill in the blank options are Larger MPC or Smaller MPCMary, a law student in a University, wants to buy a book on Negotiable Instruments. To do this, she thought of selling cakes to her classmates and schoolmates. To bake these cakes, she rents an oven at P1,400 and another P300 for the rental of the baking pan. She spends a total of P600 for the ingredients. She sells the cake at P300 each. How many cakes does she need to sell to break even? (Unit used is cakes. For example if your answer is 10, then write 10 cakes).
- The builder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the number of patrons the complex will attract each year, depending on the number of screens available. Number of screens 1 2 3 4 5 2 After paying the movie distributors and meeting all other noninterest expenses, the owner expects to net $2 per ticket sold. Construction costs are $1,000,000 per screen. Instructions: Enter your responses as whole numbers. a. Make a table showing the value of marginal product for each screen from the first through the fifth Value of marginal product Humber of screens 1 $ 3 4 Total number of patrons 40,000 65,000 85,000 100,000 110,000 5 $ $ O Negative returns to capital O Increasing returns to capital O Diminishing returns to capital S m $ What property is illustrated by the behavior of marginal products? b. How many screens will be built if the real interest rate is 5.5 percent?C=130+0.8Yd L=(1/5)*Y-10i T=100+1/4Y M=150 I=300-20i P=1 G=150 a. Solve for the IS/LM curves and determine Y* and i* b. Confirm (a) above using the Y* and i* expressions from the generalized IS-LM functions c. Verify that the respective multipliers from the generalized form of the IS/LM functions are the same as those derived from the linear form.On this least-cost abatement curve, how much (GtCO2) could we abate if we spent €8.37 billion A) 8.37 GtCO2 B) 11.2 GtCO2 C) 6.26 GtCO2 D) 4.94 GtCO2