For questions #9, 10, 11, and 12 use the following equation. C = 20 + 0.2(Y – T) 9) What is the marginal propensity to save for this economy? a) 2% b) 20% c) 60% d) 80% ( plz show the equation and how you use the numbers from the equation to solve it) 10) What is the tax multiplier for this economy? a) -0.25 b) 0.25 c) -1.25 d) 1.25 11) If the government increases taxes by 20, then how much will consumption change by? a) -5 b) 5 c) -25 d) 25 12) To increase real GDP by 40 the government needs to change government spending by a) 48 b) 40 c) 32 d) 20
For questions #9, 10, 11, and 12 use the following equation. C = 20 + 0.2(Y – T) 9) What is the marginal propensity to save for this economy? a) 2% b) 20% c) 60% d) 80% ( plz show the equation and how you use the numbers from the equation to solve it) 10) What is the tax multiplier for this economy? a) -0.25 b) 0.25 c) -1.25 d) 1.25 11) If the government increases taxes by 20, then how much will consumption change by? a) -5 b) 5 c) -25 d) 25 12) To increase real GDP by 40 the government needs to change government spending by a) 48 b) 40 c) 32 d) 20
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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For questions #9, 10, 11, and 12 use the following equation. C = 20 + 0.2(Y – T)
9) What is the marginal propensity to save for this economy?
a) 2%
b) 20%
c) 60%
d) 80%
( plz show the equation and how you use the numbers from the equation to solve it)
10) What is the tax multiplier for this economy?
a) -0.25
b) 0.25
c) -1.25
d) 1.25
11) If the government increases taxes by 20, then how much will consumption change by?
a) -5
b) 5
c) -25
d) 25
12) To increase real GDP by 40 the government needs to change government spending by
a) 48
b) 40
c) 32
d) 20
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