A temporary increase in government expenditure will a. Shift the saving curve to the right b. Shift the investment curve to the right  c. Shift the investment curve to the left  d. Shift the saving curve to the left

Q: During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this…

A: The objective of the question is to identify the factor that could have caused the increase in real…

Q: The most likely source of an increase in investment is a. Interest rates that are lower b.…

A: "Investment is a kind of good which is not consumed today but used in future in order to generate…

Q: The value of Marginal propensity the save is 0.28 Calculate the value of Marginal propensity to…

A: # MPC is the ratio of Change in consumption to change in income and MPS is the ratio of Change in…

Q: a. Draw the circular flow of spending and income. Put a proper label on every box and flow. b.…

A: Circular flow of income is the flow of income from one sector to other sector.  When economy is…

Q: Consumption .C C2 Income A movement from C to C2 could be caused by: O A. A lower tax rate. B. A…

A: A movement from C1 to C2 is caused by a decrease in the marginal propensity to consume. So, option…

Q: י The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…

A: Based on this model, households earn income when  firms purchase factors of production (labor) in…

Q: In a closed economy, consumers spend $400 regardless of the level of income, and the marginal…

A: The GDP is the value of the goods and services produced within the boundaries of the nation. It…

Q: The sum of the marginal propensity to save and the marginal propensity to consume Select one: A.…

A: MPC stands for marginal propensity to consume. This measures the net change in the consumption…

Q: None

A: b. To calculate how many spending cycles would occur before consumer spending increased by $200…

Q: The relationship between changes in spending and Real GDP without price increase is: a. Economic…

A: Real GDP is the value of goods and services produced in the economy in a given time period excluding…

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: a. By how much will GDP change if firms increase their investment by $11 billion and the MPC is 0.8?…

A:

Q: The government of a country decides to double its current level of spending, causing real GDP to…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this…

A: The objective of the question is to identify the factor that could have caused the increase in real…

Q: Consider the circular flow of expenditure and income in the Canadian economy. Which of the following…

A: The circular flow of income and expenditure basically refers to the mechanism through which an…

Q: 5. Assume an economy has not produced a single good or service so that Y=0. The economy however is…

A: Economic equilibrium is a condition or state in which economic forces are balanced. In effect,…

Q: If government spends $10B and the MPC in the economy is .8.  What will be the total change in GDP?

A: A multiplier is a term used in economics to describe an economic factor that, when increased or…

Q: In order for the economy (GDP) to be grow and take advantage of the multiplier effect, which one of…

A: As a particular product is manufactured, cost is initiated and process of business is started.…

Q: Disposable income ________ when ________. a. decreases; taxes increase b. decreases; transfer…

A: DISPOSABLE INCOME IS A NET INCOME , IT IS THE AMOUNT LEFT OVER AFTER TAX. IT IS ALSO KNOWNS AS…

Q: If GDP is 3,900, the multiplier is 8, and G falls by 10, wha New GDP is $ billion.

A: Multiplier effect shows that the change in GDP will be greater than the change in spending that has…

Q: What is the effect of an increase in investment? When investment increases, O A. aggregate demand…

A: Investment is the part of aggregate demand.

Q: Increase in tax by the government: a. None of these b. Decreases the consumption by individuals c.…

A: When government increases taxes, the disposable income of the people tends to reduce. In other…

Q: The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) always…

A: Marginal Propensity to Consume is the slope of consumption function which states that how much is…

Q: If the investment increases by 185 and the national income increases by 1200 billion what would be…

A:

Q: The table gives you information about the economy of Australia. Disposable income Saving Consumption…

A: The relationship between disposable income, saving, and consumption expenditure is a fundamental…

Q: In an economy the change in income is $2300 and change in investment is $700   What will be the…

A: We know that investment multiplier can be calculated as  Investment multiplier = change in income /…

Q: Which of the following will raise consumer expenditures, C? Select an answer and submit. For…

A: Consumer expenditure alludes to the aggregate/total sum of money spent by households to purchase…

Q: The maginal propensity to consume of country is 0.8 and the country increases its investment by 5…

A: Marginal Propensity to Consume  (MPC) = 0.8 Change in investment = 5 billion

Q: At any given amount of income, an increase in consumption will result in a. A rise in total demand…

A: Consumer use their income in two ways: 1. On consumption of goods and services, 2. On saving for…

Q: The table below shows data for three fictitious countries. a. Compute the current MPC for each…

A: MPC is the Marginal propensity to consume it shows the change in consumption in relation to the…

Q: For each form of government spending, indicate whether it represents consumption or investment.…

A: In economics, consumption refers to the use of goods and services by people to satisfy their…

Q: National economy is characterised by the following data: Private consumption C- 400 + 0.6*Y, Gross…

A: The National Income depicts the total income earned by normal residents during a year within or…

Q: Explain two effect of public expenditure on the investment??

A: The economics as a study is associated with the use of limited resources, where the economies have…

Q: Which of the following would be most likely to increase consumption spending? Selected answer…

A: The objective of the question is to identify which of the given scenarios would most likely lead to…

Q: You are told that taxes in this economy are equal to 100. What is the value of autonomous…

A: Autonomous consumption: Autonomous consumption is defined as consumption spending that occurs when…

Q: n an economy investment increases by 120 crores. The value of multiplier is 4. Calculate the…

A: Increase in investment = 120 crores. Value of multiplier = 4

Q: Question 8 When an increase in the rate of growth causes a correspondingly larger increase in the…

A: Investment refers to the act of allocating resources, typically financial capital, with the…

Q: What is the relative importance of investment spending (I) in aggreagte demand and some factors that…

A: Investment is a part of aggregate demand. Changes in Investment shift the total aggregate demand…

Q: In an economy, investment increased by 1,100 and as a result of it, income increased by 5,500. Had…

A: In economics, the link between consumer spending and the different factors that influence it is…

Q: If taxes ane decreased by $200 billion, given an MPC of .6, calculate the change in GDP. Give your…

A: The method of state receiving funds from its residents to compensate for basic utilities is known as…

Q: 15. With the economy in a recession due to inadequate demand, the government increases its purchase…

A: Aggregate demand is a sum of consumption spending, investment spending, government purchases and net…

Q: If in an economy MPC is 0.8 and investment increase by $5 billion. How much there is an increase in…

A: The marginal propensity to consume = 0.8 Increase in investment = $5 billion

Q: ECONOMICS .In an economy, total savings are $2000 crore and the ratio of Average Propensity to Save…

A: we can calculate the level of income by using APS and APC which are as follow-