If an increase in investment spending of $20 million results in a $200 million increase in equilibrium real GDP, then A. the multiplier is 10. B. the multiplier is .1. C. the multiplier is 100. D. the multiplier is 1.
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1. If an increase in investment spending of $20 million results in a $200
million increase in equilibrium real
A. the multiplier is 10.
B. the multiplier is .1.
C. the multiplier is 100.
D. the multiplier is 1.
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- If the multiplier is 5 and investment increases by $3 billion, equilibrium real GDP will increase by: Select one: a. $2 billion b. $8 billion. C.$15 billion. d. $3 billion.If an increase in investment spending of $50 million by Amgen, a biomedical company, results in a $400 million increase in equilibrium real GDP, then what is the expenditure multiplier? Select one: a. the multiplier is 0.125. b. the multiplier is 3.5. c. the multiplier is 8. d. the multiplier is 50.If an increase in investment spending of $50 million results in a $400 million increase in equilibrium real GDP, then O A. the multiplier is 0.125. B. the multiplier is 3.5. C. the multiplier is 8. D. the multiplier is 50.
- During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this economy is known to be equal to 10.Which of the following might have caused the increase in real GDP? Question 12Answer a. Exports increased by $0.3 billion. b. Investment decreased by $0.3 billion. c. Exports decreased by $0.3 billion. d. Imports increased by $0.3 billion. e. Government expenditure on goods and services increased by $3 billion.2. If a $580 billion initial increase in spending leads to a $10850 billion change in real GDP, how big is the multiplier?17. If the MPC were equal to zero, the expenditure multiplier would be * a. Less than zero b. zero c. between zero and one d. one e. greater than one
- If GDP is $3,400 billion, the multiplier is 5, and I rises by 15, what is the new level of GDP? The new level of GDP is $ billion.SHORT ANSWER QUESTIONS Increase in foreign holdings of assets in the United States Exports of goods Imports of services Statistical discrepancy Net transfers Exports of services Imports of goods Income payments on investments Increase in U.S. holdings of assets in foreign countries Income received on investments b. the balance of trade c. the balance on the financial account $3,288 31. The following are hypothetical data on the U.S. balance of payments. You can assume the balance on capital account is zero. Use the data to calculate the following (SHOW YOUR WORK) a. the balance on the current account d. statistical discrepancy -$29 1 64 694 -1,520 -444 -3,286 545 12. State how each of the following will affect the relative values of the U.S. dollar and the British pound (say which currency appreciates and which currency depreciates): (a) U.S. citizens switch from buying stock in U.S. companies to buying stock in British companies. (b) The inflation rate in the United States decreases…What is the multiplier effect in economics? A. The tendency of consumers to save rather than spend B. The tendency of firms to reduce production during a recession C. The amplification of changes in spending through the economy D. The reduction of government spending to control inflation
- 3. When the following event occurs, the change in Real GDP = Event: The government increases its education funding by $60 billion; the marginal propensity to consume is 0.6. the multiplier.The value of the multiplier is necessarily increased if a. the marginal propensity to consume increases and the marginal propensity to import falls. b. the marginal propensity to consume falls and the tax rate falls. c. the marginal propensity to consume and the marginal propensity to import rise. d. the income tax rate falls and the marginal propensity to import rise.a. Please explain the concept of the multiplier, including What information is required to calculate the spending multiplier b. List and explain the 3 different multipliers that we discussed. c. Explain in detail how the multiplier works to impact GDP. Be specific! Start with the injection of money into the economy and then how that affects household income and then spending via the mpc. Go on to discuss the rounds of spending, etc. and how the ultimate impact on gdp is amplified by the multiplier effect.