If investment increases by $300 and, in response, equilibirum real GDP increases by $600, the multiplier is A 0.2 B 0.5 5.0 2.0

Q: In an economy MPC equals to 0.2 if the investment increases by $ 100 billion calculate the increase…

A:

Q: Question 27 When disposable income equals $800 billion, consumption expenditure equals $600 billion…

A: "Since you have asked multiple questions, we will solve first question for you.If you want specific…

Q: Find Multiplier if the value of MPC is 0.65

A: The data presented in the question above is:- Marginal propensity to consume = 0.65  Multiplier is…

Q: If marginal propensity to save is 0.22  Calculate the value of k(Multiplier)

A: We are given with the value of marginal propensity to save as:- MPS = 0.22 Multiplier = k  = ?

Q: Find the value of multiplier when MPC is equals to 0.70

A:

Q: What happens to GDP if the investment icreases by 100 with MPC = 0,8 and tax 20%?

A: Given: Investment level increases by = 100 MPC = 0.8 Tax = 20% To Find: The GDP level:

Q: Find multiplier if MPC is 0.2

A: Given: MPC is 0.2

Q: If the multiplier is 5, then the MPC is   0.05 0.5 0.6 0.8

A: Macroeconomics discusses economic behavior in an aggregate manner. It explains the economy as a…

Q: Find the value of MPC when multiplier is stated as 0.97

A: MPC or the marginal propensity to consume is the percentage of consumer's income that the consumer…

Q: If a rise in national income of £100m causes consumption of domestic goods and services to rise by…

A: multiplier level depends on the consumption level , higher the consumption more the multiplier so…

Q: Japan increases investment by 12 billion. The magnitude of multiplier is 6. Calculate MPC

A: Rise in investment = 12 billion Multiplier = 6 MPC = ?

Q: Calculate the Multiplier when the MPC is 0.97

A: Generally in the given question MPC is stated as = 0.97 Value of the multiplier needed to be…

Q: Suppose that the MPC is .75 and the MPM is .1.  What is the size of the multiplier?

A: MPC refers to Marginal Propensity to Consume. It is the proportion of the additional income which…

Q: What is the value of multiplier, if the MPC is 0.7 a) 4 b) 7.5 c) 5 d) 0.75 e) 0.04

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

Q: If the value of investment multiplier is 1 what will be the value of MPC

A: The information being provided is:- Investment multiplier = 1 MPC = ? We have to find the value of…

Q: If the value of MPC is 0.8, find the value of multiplier.

A: Multiplier refers to a proportionality factor that ascertains the level of change that an…

Q: Find the value of change in investment if the value of multiplier is 5 and the change in national…

A: The information being given is as follows:- MULTIPLIER = 5 Change in national income = $1000 million…

Q: Calculate multiplier if MPC is 0.77

A: The formula and calculation: Multiplier =11-MPC=11-0.77=4.34782609=4.35

Q: what is the value of b

A: Aggregate expenditure is defined as the total expenditure that is incurred by all the economic…

Q: Calculate multiplier if MPC is 0.75

A: Spending multiplier: - it is a fraction that shows the magnitude of the change in national income…

Q: If the value of multiplier is 32 find the MPC and MPS.

A:

Q: If the ratio of MPC and MPS is 4:1 then the value of investment multiplier would be 4 True / False

A: # We know that the sum of MPC and MPS is always 1 That is:- MPS + MPC = 1

Q: Goods and Services are scarce becauser resources used to produce them are

A: # We know well that we live in a world of scarcity where the resources we have are limited in nature…

Q: If the ratio of MPC and MPS is 4:1 then the value of investment multiplier would be 4 True / False

A: One of the property of MPS and MPC is  MPS + MPC  = 1  MPC / MPS = 4/1

Q: What will the multiplier be when the MPS is 0, 0.4, 0.6, and 1? What will it be when MPC is 1,…

A: The multiplier indicates the amount by which the GDP increases due to a unit increase in the…

Q: Q1. Calculate the value of multiplier  when mpc is 0.5.

A: Below is the value of marginal propensity to consume: MPC = 0.5 The formula for the Multiplier: K =…

Q: Consider an economy that is characterised by the following set of equations: C = co + C1YD Yp Y - T…

A: As government expenditure and taxes here is constant, we can consider the investment multiplier and…

Q: Calculate the value of Multiplier if change in income is $2300 and the change in investment is $700

A: The data presented in the question above:- Change in income = $2300 Change in investment = $700  The…

Q: Calculate the value of multiplier in an economy where LRR is 37%

A: The information being given is:- Legal reserve ratio in the economy = 37% = 0.37 Multiplier = ?