a. What will the multiplier be given the MPS values below? Fill in the table with your answers. MPS Multiplier 0.4 0.6 b. What will the multiplier be given the MPC values below? Fill in the table with your answers. MPC Multiplier 0.90 0.67 0.50 c. How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC is 0.80? | billion How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC instead is 0.67? billion

a. What will the multiplier be given the MPS values below? Fill in the table with your answers. MPS Multiplier 0.4 0.6 b. What will the multiplier be given the MPC values below? Fill in the table with your answers. MPC Multiplier 0.90 0.67 0.50 c. How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC is 0.80? | billion How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC instead is 0.67? billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Calculate the value of MPC if the multiplier is given to be as 1.4
Find the value of MPC when multiplier is stated as 0.97
The autonomous consumption expenditures and autonomous investment expenditures in an economy are $250 and $350, respectively. It is also observed that individuals spend 90% of their additional income on consumption. Using the information provided above, the aggregate expenditure function for this economy is: (Round your response for the intercept term to the nearest whole number and for the slope term to two decimal places.) The simple multiplier for this economy can be calculated as 10. (Round your response to one decimal place.) The value of the simple multiplier implies that a $200 decrease in the autonomous investment expenditures would lead to a $ in the equilibrium level of actual income. (Round your response to the nearest dollar.) increase AE = 600+ 0.9 Y decrease
The Federal Reserve was very worried about deflation in early 2009, which would raise real interest rates. Suppose the rate of deflation was 2%, unemployment went up 4%, investment spending fell $20 billion during that time, and that the multiplier was 2. Using the information given above, put the relevant data into the formula that defines the spending multiplier in your answer to question 19. Please do not calculate any answer in this question that will be done in question 21. Use of abbreviations used in class content for economic variables is OK.
The real life multiplier: a) is the same as the oversimplified multiplier formula suggests. b) is smaller than the oversimplified multiplier formula suggests. c) is larger than the oversimplified multiplier formula suggests. d) can be larger or smaller than the oversimplified formula suggests, depending on MPC
If consumers spend 90 cents out of every extra dollar received, the A) MPS is 0.10 B) MPC is 0.90 C) Multiplier is 10 D) All of the above
Please also find the MPS to the question with the MPC of 0.50 And find the MPC to the question with the MPS of 0.4
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For the multiplier to be positive what condition must be satisfied?
Calculate the Multiplier when the MPC is 0.97
Assume that Consumption is C = c(Y-T); Taxes T = tY; Investment / = -bi; and Government expenditure (G) is exogenous. Determine the multiplier for an increase in the tax rate.
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