If the marginal propensity to consume (MPC) increases. A. The MPS increases B. The multiplier decreases C. MPC +MPS is less than 1 D. THe multiplier increases
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- If the marginal propensity to consume is 0.95, Instructions: In part a, enter your response as a whole number. In part b, ent a. What is the value of the multiplier? b. What is the marginal propensity to save?As the marginal propensity to consume (MPC) increases, As the marginal propensity to save (MPS) increases, the multiplier the multiplier remains the same. increases. decreases. decreases. increases. remains the same. If the marginal propensity to consume is 0.30, what is the multiplier, assuming there are no taxes or imports? Round to the tenths place.How do you calculate marginal propensity to consume and how does it effects the multiplier?
- The marginal propensity to consume is 0.5. calculate the value of multiplier and marginal propensity to save.As the marginal propensity to consume (MPC) increases, As the marginal propensity to save (MPS) increases, the multiplier the multiplier remains the same. remains the same. decreases. decreases. increases. increases. If the marginal propensity to consume is 0.40, what is the multiplier, assuming there are no taxes or imports? Round to the tenths place. Given the multiplier that you calculated, by how much will gross domestic product (GDP) increase when there is a $1,000 increase in government spending? Give your answer to the nearest whole number. %24Suppose that the MPC is .75 and the MPM is .1. What is the size of the multiplier?
- Income and Expenditure – End of Chapter Problem An economy has a marginal propensity to consume of 0.5, and Y*, the income-expenditure cquilibrium GDP, cquals $500 billion. Given an autonomous increase in planned investment of $10 billion, answer the following questions. a. What is the value of the multiplier? Value of the multiplier = b. What would you cxpect the total change in Y* to be bascd on the multiplicr formula? Change in Y* based on the multiplier = billion c. What is the total change in real GDP after the 10 rounds? It may be beneficial to make a table on a separate sheet of paper to calculate the change in real GDP for each of the rounds, and then add up the values. c. What is the total change in real GDP after the 10 rounds? It may be beneficial to make a table on a separate sheet of paper to calculate the change in real GDP for each of the rounds, and then add up the values. Total change in real GDP (10 rounds) = billion d. How do your answers to the change in GDP and Y…If the value of multiplier is 32 find the MPC and MPS.Find the multiplier effect. when the consumer spends 0.6 and save 0.4 of every 1 SAR of extra income. a. if MPC -0.2 b. if MPC-0.3 Cif MPC -0.4 d. if MPC-0.5 e. if MPC-0.6 6. if MPC -0.9
- Calculate the value of Multiplier if change in income is $2300 and the change in investment is $7001. Explain briefly how spending can multiply, and then calculate the spending multiplier when the MPC isa. 0.75 b. 0.8 c. 0.6The value of multiplier is 1.35 Calculate the value of Marginal propensity to save