In an economy the value of MPS is given as 0.72  Calculate the value of multiplier

Q: An increase of $100 million in investment leads to a rise of $500 million in national income. Find…

A: The information being given is as follows:- Rise in investment = $100 million This change induces a…

Q: Using the above graph (assume RGDP amounts are in trillions of dollars), which policy would return…

A: Given multiplier = 4 Output gap = Actual output – potential output = 12 – 10 = 2 As there is…

Q: Ramey's estimate of the short-run "multiplier effect" of government purchases on GDP (i.e., dY/dG)…

A: According to Ramey, the inspection of the macroeconomic hypothesis and observational proof on the…

Q: You are given the following information about a closed economy with no government: Consumption = 115…

A: A closed economy implies the economy which does not trade with any other country and thus whatever…

Q: If a $20 increase in disposable income causes consumer spending to rise by $4, what is the…

A: The economics a study is based upon the idea that the resources which are present with the economies…

Q: Find Multiplier if the value of MPC is 0.65

A: The data presented in the question above is:- Marginal propensity to consume = 0.65  Multiplier is…

Q: In an economy investment increases by 120 billion. The value of multiplier is 4. Calculate MPC.

A: Below is the given values: Increase in the investment = 120 billion Multiplier = 4 MPC = ?

Q: Calculate MPS if it's given that multiplier is 7.9

A: The data presented in the question is as follows:- We are given with the value of multiplier which…

Q: Calculate the Multiplier.

A: Given information: It is not Y=0.85, we are considering it as a spelling mistake because it should…

Q: If the expenditure multiplier is 2.5 and the government spending increases by $4 billion, what would…

A: Given: Expenditure multiplier = 2.5 Government spending = $4 billion

Q: Is the mpc in the multiplier .75?  only because multiplier is 1/(1-mpc) which would make sense for…

A: In the original question, MPS has given by stating "average households will save 25 cents of every…

Q: Find multiplier if MPC is 0.2

A: Given: MPC is 0.2

Q: The value of MPS is 0.93 Calculate MPC

A: We know that given the value of MPS we can easily calculate the value of MPC using the…

Q: The multiplier in the economy is 8.5 and the change in income is $3200 million What would be the…

A: The data being presented in the question is:- Multiplier = 8.5  Change in income = $3200 million…

Q: oblem 8. VWhat will the value of multiplier MPC = 1, (ii) MPC = 0, (iii) MPC = MPS?

A:

Q: In an economy the change in income is $6600 and change in investment is $3600 Calculate multiplier

A: The information being given is:- Change in income = $6600 Change in investment = $3600 We have to…

Q: C = 450 + 0.4Y I = 350 G = 150 X = 70 Z = 35 + 0.1Y T = 0.15Y Yf = 1550 Q.2.2 Calculate the size of…

A: The multiplier is change in the aggregate income due to injection or withdrawal in the economy.

Q: Calculate the value of MPS when MPC is 0.92

A: Marginal propensity to consume (MPC) is the change in consumption when there is change in income. It…

Q: The value of multiplier is 1.35 Calculate the value of Marginal propensity to save

A: The inverse of Marginal propensity to save gives the value of multiplier.  k = 1/MPS

Q: An economy has no imports and no income taxes, MPC is 0.9, and real GDP is $200 billion. Businesses…

A: Marginal Propensity to consume(MPC)=0.9 Real GDP=$200)Billion Increase in Investmnet=$10Billion…

Q: Siven: C= 300 + 0.75Y I= 400 G= 300 T=100 b) Calculate the value of multiplier for this economy

A: Multiplier represents proportionality factor that determines that how much does an economic variable…

Q: Assume that Sweden has a closed economy where consumption function is " C = 400 + 0.6 Yd ", net tax…

A: t: Tax rate = 0.3 MPC: Coefficient of Yd = 0.6 Thus, Multiplier = 1 / [1 - MPC x (1 - t)]

Q: In Russia, the value of multiplier is 7  Calculate the value of MPS

A: The information being given is:- Multiplier = 7 Marginal propensity to save = ?

Q: MPS is 0.48  Calculate MPC

A: # We know well that the sum of MPS and MPC is 1 MPS + MPC = 1

Q: Calculate multiplier if MPC is 0.77

A: The formula and calculation: Multiplier =11-MPC=11-0.77=4.34782609=4.35

Q: In an economy, income rises by $10,000 as a result of rise in investment Expenditure by $1000.…

A: The given information is as follows:- Rise in income = $10,000 Rise in investment expenditure =…

Q: Calculate multiplier if MPC is 0.75

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

Q: If the spending multiplier is 10, a S100 increase in government spending and Sl00 increase in taxes,…

A: GDP is the value of final goods and services produced in the economy within a given period of time

Q: suppose the value of the MPS is 0.92 find the value of the MPC

A: According to the given question The formula when we have to calculate the MPC when MPS is given…

Q: What is the value of multiplier?

A: Multiplier depicts the change of one factor on the other with different amounts. The multiplier can…

Q: what is MPC, MPS and spending multiplier?

A: In Keynesian economics, the concepts of marginal propensity to consume, marginal propensity to save…

Q: If MPC and MPS are equal, what is the value of multiplier?

A: MPS stands for marginal propensity to save and MPC stands for marginal propensity to consume.

Q: Calculate MPS when MPC is 0.41

A: # We know that the sum of MPS and MPC is 1 so we have:- MPS + MPC = 1

Q: Answer the following questions and provide the necessary solutions. 1. Compute the multiplier if a)…

A: Multiplier represent how many time money multiplied in economy it depends upon the MPC , because MPC…

Q: Define and Derive Multiplier and Accelerator.

A: In macroeconomics, the multiplier depicts an association between income and investment but the…

Q: . Calculate

A: Marginal propensity to consume (MPC) is being defined as the share of additional income which a…

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 value of MP S is 0.25 what is the value of multiplier?

A: Multiplier refers to the situation where the number of times the level of income increases due to…

Q: What is multiplier if MPS is 0.9?

A: Multiplier(K)= 1/1-MPC=1/MPS

Q: Which of the following has the largest multiplier asssociated with it? A) MPC = 0.6 B) MPC = 0.8…

A: The gross domestic product multiplier is the value that is multiplied with the autonomous level of…

Q: If the value of MPS and MPC is same. What will be the value of multiplier

A: The information being given to us is as follows:- The value of Marginal propensity to save and…

Q: In an economy investment multipier increase by 120 billion. The value of multiplier is 4. Calculate…

A: The investment increase by = 120 billion Value of multplier (K) = 4

Q: Assuming there is no government or foreign sector, if the multiplier is 5, the MPC is Select one: a.…

A: Given:  There is no government sector and no foreign sector. Value of multiplier = 5 To Find : MPC

Q: If MPC = 0.28 how much will be the additional investment required to increase income by 1300 also…

A: Given: MPC=0.28 Increase in income=1300 To find: Additional investment Multiplier

Q: Calculate the value of multiplier in an economy where LRR is 37%

A: The information being given is:- Legal reserve ratio in the economy = 37% = 0.37 Multiplier = ?

Q: The multiplier is Multiple Choice 1/(1 MPC. 1/MPS. 1/(1- MPS). 1/MPC.

A: The multiplier is defined as the change in income of the household to the permanent change in the…