a. What will the multiplier be given the MPS values below? Fill in the table with your answers. MPS Multiplier 0.4 0.60 0.6 0.40

Q: Question 2 The IS-curve with the multiplier Y=¹[a b(rt-F)] ______ the baseline IS-curve Ỹ = a −b(rt…

A: 2) IS curve shows the negative or inverse relationship between income or GDP and interest rate.

Q: if a $200 billion increase in invest spending creats $200 billion new income in the first round of…

A: Investment multiplier: - it is a factor that shows the effect of the increase in investment on the…

Q: If the marginal propensity to save (MPS) is 0.5, the multiplier will be А. 2 В. 2.5 С. 0.5 D. 4.

A: Given data: Marginal propensity to save is MPS=0.5

Q: If the marginal propensity to save​ (MPS) is​ 0.5, the multiplier will be   A. 2.   B. 2.5.   C.…

A: Marginal propensity to save (MPS): The marginal propensity to save or (MPS) is that proportion of…

Q: Suppose MPC equals 0.9, government taxes 30% of all incomes, and the marginal propensity to import…

A: here we calculate the change in G, by using the relevant given information , so the calculation as…

Q: Briefly define the following terms and explain the relationship between them: MPC . . . . . . . . .…

A: MPC is marginal propensity to consume,which is change in consumption/change in income. Multiplier is…

Q: In an economy without taxes and imports, an increase in investment of $50 billion increases…

A: Answer to the question is as follows :

Q: The value of the Multiplier decreases in only one of the following cases: O An increase in the…

A: Multiplier states the change in the variable due to  change in autonomous Variable.In terms of…

Q: What is the value of the MPC? 0.8 b. Assume now that a lump-sum tax is imposed such that the…

A: (1)  Before-tax: Before-tax, GDP and Disposable income (DI) are the same.  As we can see, every 100…

Q: In the economy of Spendsalot, the marginal propensity to save, MPS, is 0.8. What is the marginal…

A: Marginal propensity to save is the proportion of income saved.

Q: If the multiplier is 5 and investment increases by $3 billion, equilibrium real GDP will increase…

A: Macroeconomic equilibrium occurs when the quantity of real GDP demanded equals the quantity of real…

Q: If the multiplier is 4 and a change in government spending leads to a cumulative $500 million…

A: The multiplier can be defined as the number which denotes the proportionate increase in income due…

Q: If the MPS is 0.1 , Then the multiplier is 10 . true or false?

A: MPS is the marginal propensity to save: It is the percentage of extra addition to the income which…

Q: Suppose an initial increase in government spending (G) increased GDP by $50,000. If he simple…

A: The size of government-spending multiplier(k) is the ratio of change(∆) in income(Y) to the…

Q: Calculate Investment multiplier when MPS is 0.22

A: # We know that the reciprocal of MPS gives the investment multiplier.  Investment multiplier = 1/MPS…

Q: Question 13 The value of the Multiplier decreases in only one of the following cases: An increase in…

A: Multiplier is the ratio of change in income due to change in investment. Multiplier = ∆Y∆I…

Q: What will be the multiplier if MPS is 0.633 please response fast

A: A multiplier is a term used in economics to describe an economic element that generates increases or…

Q: The government spends an additional $926 billion and the marginal propensity to consume is 66%. How…

A: According to the question, it is given that : The government spends an additional $926 billion The…

Q: Given that marginal propensity to save (MPS) is 0.5, what is the multiplier? 4 5 0.5

A: According to the question, marginal propensity to save i.e. MPS is 0.5. Formula for multiplier is…

Q: Part 3: To answer this question we want to use the balanced budg et multiplier concept. First, we…

A: The concept that depicts in which a government leads to an increase in spending and taxes at a rate…

Q: Given:  C = 100 + 0.75Yd;  I = 120 - 0.1Y – 200i; G= 40; T = 40  What is the autonomous spending…

A: The multiplier reflects how the change in expenditure would affect total expenditure and the…

Q: Consider a hypothetical economy where there are no taxes and no foreign trade, and households spend…

A: Given information: Household spends $0.90 of each additional dollar they earn and save the remaining…

Q: 1. The Marginal Propensity to Consume (MPC) equals: A. 0.70 B. 0.75 C. 0.80 D. 0.85

A: MPC stands marginal propensity to consume which define as the proportion of an aggregate raise in…

Q: GDP, Billions Consumption, Billions $100 $120 200 200 300 280 400 360 500 440 600 520 700 600 c. Now…

A: Given the proportional tax = 10% We are required to find the new consumption schedule, MPC, and…

Q: Investment multiplier is given as 1.42 Calculate the MPS and also MPC

A: # We know that the investment multiplier is given as:- Investment multiplier = 1 / MPS Also the…

Q: Suppose disposable income increases by $2,000$2,000. As a result, consumption increases by…

A: (Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If a $568 increase in investment spending increases income by $568 in the first round of the…

A: here we calculate the increase in income by using the given information so calculation as follow-

Q: Answer the following questions: Instructions: In part a, round your answers to 2 decimal places. In…

A: In an economy, the value of multiplier can be computed in two ways, such that: =1/(1-MPC) And,…

Q: What is multiplier if MPS is 0.9?

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

Q: falls by $50 billion, then disposable income will increase by________ billion and consumption…

A: The proportion of an increase in income that is spent on spending is known as MPC. It is the most…

Q: Find the value of multiplier if MPS is 0

A: The information give to us is:- Marginal propensity to save = 0 Multiplier (k) = ? We have to…

Q: What will an increase in the tax rate cause? A decrease in the spending A multipliers An increase in…

A: Multiplier effect is shows the multiplication of one varible due to change in another varible

Q: A company is growing rapidly, and is investing nearly all of its income, so its marginal propensity…

A: Disposable income refers to the income available to the people after the payment of tax and social…

Q: a. What will the multiplier be given the MPS values below? Fill in the table with your answers.…

A: The multiplier effect intensifies the effect of a change in spending, whether it is a decrease or…

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: Consider the following closed economy model: C=500+0.2(Y-T) I=200 G=100 T=100+0.1Y Derive the…

A: Multiplier = 1.22

Q: Government expenditures represents one of the injections of expenditure. Explain how an increase in…

A: In the circular flow of economy, leakages reduce the flow of income in the economy and injections…

Q: Assuming that the MPC is 0.80, calculate the value of the government expenditures multiplier.

A: Given:- MPC=0.80 To calculate:- Government expenditure multiplier=? Please find the image attached…

Q: Potential GDP is at 500 trillion, actual GDP is at 375 Trillion. If spending multiplier is 2.857 how…

A: Given, Potential GDP = $500 trillion, Actual GDP = $375 trillion Spending multiplier = 2.857…

Q: An economy with no government is described by the following: • Marginal propensity to consumer = 0.8…

A: Balanced Budget function  is the function of government expenditures and revenues which depicts that…

Q: If the multiplier is 10,

A: For finding multiplier we use the formula Multiplier=(1/1-mpc)

Q: What will an increase in the tax rate cause? A decrease in the spending A multipliers An increase in…

A: In an economy, marginal propensity to tax refers to the proportion of income that is taken out to…

Q: a. What will the multiplier be given the MPS values below? Fill in the table with your answers. MPS…

A: MPC is known as marginal propensity to consume which is proportion of extra income consumed. MPS is…

Q: If the MPS is 0.5 then find the multiplier.

A: In Keynesian economics, the equilibrium level of output is attained at a point when the aggregate…

Q: If an economy is in recession, discuss the differing effects created by a tax cut vs. a GDP-G…

A: In an economy, recession refers to a situation when the actual output level falls short of the…

Q: Suppose MPS=0.68 and MPI=0.17 19. What is the spending multiplier? 20. What is the level of real GDP…

A: Government spending refers to money spent by the public sector on the acquisition of goods and…