34 64. If the marginal propensity to save (MPS) is small, O a. make the simple multiplier larger. O b. make the simple multiplier smaller O c.increase the interest rate. O d. not affect the value of the simple multiplier

34 64. If the marginal propensity to save (MPS) is small, O a. make the simple multiplier larger. O b. make the simple multiplier smaller O c.increase the interest rate. O d. not affect the value of the simple multiplier

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.6P

See similar textbooks

Related questions

Q: Price Quantity Supplied Quantity Demanded $3 30 75 $4 40 70 $5 50 65 $6 60 60 $7 70 55 $8 80 50…

A: The market demand curve shows the negative relationship between price of the commodity and its…

Q: 44. Year Nominal GDP Real GDP Price Index 1980 2789.5 5161.7 1985 4220.3 6053.7 69.7 1990 5803.1…

A: Nominal GDP: - it is the value of all final goods and services produced in any country in a given…

Q: Disposable income Consumption 200 205 225 225 250 245 275 265 300 285 Refer to the given data. The…

A: The marginal propensity to consume (MPC) is a measure that basically shows how much consumption of a…

Q: 10. Suppose the consumption function is represented by the equation: C = 500 + 0.6Y Simple…

A: MPC = coefficient of Y = 0.6 Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.6) = 1/0.4 = 2.5

Q: Why is this answer different to the other answers for the same question?

A: Cournot model is an economic model wherein contending firms pick an amount to create freely and all…

Q: 69. Consider the following consumption function C = 1100 + 0.6Yd What is the simple multiplier? O a.…

A: The formula for the multiplier is as follows : Multiplier = 1 / 1 - MPC

Q: Why is macroeconomics important for business students

A: It can be described as an indicatornthat helps to know about the overall health, performance of the…

Q: 62. Fatima's disposable income increases by $1000, and she spends $600 of it. Fatima's a. Fatima's…

A: Macroeconomics is the study of the economy as a whole. It explains different aspects such as income,…

Q: 88. A type of unemployment in which workers are in-betweer jobs or are searching for new and better…

A: Unemployment reflects a scenario where a portion of labor force fails to get ample work…

Q: The data below are from the economies of Ishgandar and Nonburmia. Ishgandar Nonburmia GDP Nominal…

A: Disclaimer: As per Bartelby guidelines, in the case of multiple questions, only the first one will…

Q: 66. Consider the following consumption function C = 1100 + 0.6Yd What is autonomous consumption? O…

A: Autonomous consumption is being defined as the expenditures which the consumers must make even while…

Q: 17. Consider the following macroeconomic mode Time C= 200 + 0.8Y GI (Gross Investment)= 200 GP…

A: In an economy, the macroeconomic equilibrium is established at a level of real GDP where the…

Q: Year Real GDP Nominal GDP Price Index 2000 $14,500 A 100 2001 $15,500 $17,000 B 2002 $20,000 117…

A: Nominal GDP is defined as the total amount of finished goods and services produced within the…

Q: Price Тах Po Quantity 18. Refer to the above figure. What are the prices for buyers and sellers…

Q: Could you please give me full detailed answer?

A: A pizza company runs its business in a franchisee mode and has decided to conduct a $1 promotion for…

Q: Which one is not issued in Macroeconomics

A: CONSUMER'S EQUILIBRIUM isn't included within the macro economics. it's a micro economic property…

Q: Consider the following Macro model: GDP=Y=C+GI+GP+NX C=120+0.80Y. G.I=80 G.P=60 Tax=100 NX= -20 Yd =…

A: Multiplier in economics is the factor by which the economic variables get multiplied due to a change…

Q: 75. 17) If the demand and supply equations = Qd = 100 – 4 P Qs = 60 +6 P What is the equilibrium…

A: The point where the demand and supply curve intersects is called the equilibrium point. The…

Q: 26. Which of the following is NOT a determinant of demand? (A) The price of a substitute good. (B)…

A: Hi! thanks for the question but according to the guidelines, we answer only one question at one…

Q: 87. Demand - Pull inflation is caused by O a. a decrease in aggregate demand O b. an Increase in…

A: Demand-pull inflation is a period of inflation which arises from rapid growth in aggregate demand.…

Q: 41. Year CPI Inflation rate 2004 100 2005 125 A 2006 175 B What is the inflation rate for year 2005…

A: 41) Inflation rate is given as Inflation= [(CPI2005-CPI2004)/CPI2004]*100

Q: these multiple choice Questions from MACROECONOMICS Course. I need the final answer,please.

A: 62) Consumption function (C=a+bYd) C=1100 + 0.6Yd

Q: these multiple choice Questions from MACROECONOMICS Course. I need the final answer,please.

A: 70 ) Consumption function C=1100+0.6Yd

Q: 40. Year CPI 2006 100 2007 136 the rate of inflation for 2007 is О а. 36% O b. 3.6% O . 63% O d.…

A: 1) The rate of inflation is given as Rate of inflation in 2007= [(CPI2017-…

Q: What are the responsibilities of an economic analyst? Elaborate in complete sentences using…

A: An economic analyst collects, analyses, and applies complicated data in order to produce actionable…

A: Economics is a social science that discusses human behavior regarding their unlimited wants in terms…

Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: 2003 10,960.8 106.4 2007 13.841.3 11.566.8 119.6 What is the REAL GDP for the year 1990? O a. $3,990…

Q: 14. If consumption function is given by : C= 100 + 0.8Yd , then MPS equal О a. 0.8 O b. 8 O .2 O d.…

A: Consumption is the spending or expense which is incurred for the purpose of utility by the consumer…

Q: This multiple choice question from MACROECONOMICS course. just write for me the final answer.

A: Unemployment rate refers to the rate of total unemployed group of any country.

Q: 50. As disposable income increases, O a. consumption and saving both decrease O b. consumption…

A: 50) Disposable income is the sum of consumption and savings.

Q: 1. The Following data is given for the period 1999-2003 Interest rate Inflation i TT 1999 4.7 4.4…

A: A multiple regression equation describes the combined effect of all the predictors in the model.…

Q: What does it mean to think like an economist?

A: Economist think by considering relevant facts about an economy.Different factors such as…

Q: 28 83. Suppose the aggregate demand and aggregate supply schedules for a hypothetical economy are as…

A: Equilibrium price level is $200.

Q: 1 1. The equation, GDP = C + GI+ GP + NX, best describes the O a. the Income approach to measuring…

A: Gross Domestic Product, or GDP is the sum of final value of all goods and services produced in an…

Q: 53. Consider an economy described by the following parameters: C=1000+0.8(Y – T) Government…

A: Autonomous consumption is being defined as the expenditures which the consumers must make even while…

Q: Year CPI 2006 100 2007 136 the rate of inflation for 2007 is O a. 36% O b. 6.3% O c. 3.6% O d. 63%

A: The rate of inflation is a measure of the change in the price level of a country over a given period…

Q: What are factors affecting economic analysis?

A: A study of the economic system can be defined as an economic analysis. The economic analysis helps…

Q: 3. Suppose the following production function is given for a Solowian type of economy: Y = K*L-- Ka(2…

A: Answer-

Question

This multiple choice question from MACROECONOMICS course. just write for me the final answer.

34
64. If the marginal propensity to save (MPS) is small,
O a. make the simple multiplier larger.
O b. make the simple multiplier smaller
O c. increase the interest rate.
O d. not affect the value of the simple multiplier

Branch of economics that analyzes the behavior and performance of an economy as a whole. It focuses on the study of aggregates and evaluates changes related to unemployment, gross domestic product, inflation, monetary and fiscal policies of the government.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

J 7
QUESTION 8 Which of these is positively related to the size of the multiplier? O a. The marginal propensity to consume O b. The marginal utility of money OC. The marginal tax propensity Od. The marginal propensity to save
An increase in the value of the simple multiplier can be caused by... O a. An increase in the net tax rate. O b. A decrease in the net tax rate. O c. An increase in the marginal propensity to save. O d. A decrease in the marginal propensity to consume. O e. An increase in the marginal propensity to import. Clear my choice
4
Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fall in the real interest rate. Also assume that the economy’s multiplier is 4. b. In what direction and by how much will it eventually shift?
Consider the impact of a cut in the interest rate set by the central bank (the "policy rate"), which causes banks to lower interest rates for both borrowers and lenders. Select one or more: U a. Borrowers like Julia will definitely be better off O b. Borrowers like Julia will definitely increase their current consumption O c. If Marco is a saver (not an investor) he will definitely be worse off O d. If Marco is a saver he will definitely decrease his consumption
what is the correct answer?
The closed economy of Sokovia has a GDP of 150 billion dollars and a marginal propensity to save of 02. In the closed economy of Madripoor the GDP is 160 billion dollars and the marginal propensity to save is 0 25 We can infer that 6. Select one answer: O It takes Sokovia an injection of 10 billion dollars to reach a GDP of 200 billion dollars O The multiplier in Madripoor is 6. O The multiplier in Sokovia is 4. O It takes Madripoor an injection of 12 billion dollars to reach a GDP of 200 billion dollars.
Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fall in the real interest rate. Also assume that the economy's multiplier is 4. Instructions: Enter your answers as a whole number. a. If household wealth falls by 6 percent because of declining house values, and the real interest rate falls by 3 percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level? Aggregate demand will initially shift rightward v by $ |billion. b. In what direction and by how much will it eventually shift? Aggregate demand will eventually shift rightward by $ billion.
Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fall in the real interest rate. Also assume that the economy's multiplier is 4. Instructions: Enter your answers as a whole number. a. If household wealth falls by 6 percent because of declining house values, and the real interest rate falls by 3 percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level? Aggregate demand will initially shift (Click to select) V by $ billion. b. In what direction and by how much will it eventually shift? Aggregate demand will eventually shift (Click to select) V by $ billion.
11
The transfer payment multiplier is smaller than the expenditure multiplier by the: O a. Transfer payment O b. Aggregate demand O c. Marginal propensity to consume O d. Marginal propensity to save