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If the MPC=0.75, what is the effect of a $60 billion increase in autonomous consumption on RGDP?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.4P

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If the MPC=0.75, what is the effect of a $60 billion increase in autonomous consumption on RGDP?

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Give me correct answer with calculation and full explanation otherwise i give down vote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Please give me correct answer and full explanation. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Al. (A) (B) (C) (D) (E) If the multiplier equals 4, then the marginal propensity to save must be equal to: 0.25. 0.4. 0.5. 0.75. the marginal propensity to consume.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
True/False Calculate MPS when MPC is 0.88
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The equilibrium level of output for an economy is given as R2420m, with autonomous spending of R968m. If autonomous spending increases by R232m, the new equilibrium level of output will be __________ and the multiplier is _____. (a) R3000m; 2.5; (b) R928m; 4; (c) R580m; 2.5; (d) R3000m; 4.
Which of the following would be an appropriate fiscal policy to close a recessionary gap of $100 billion assuming an MPC of 0.80? (A) Increase government expenditures by $20 billion. (B) Decrease government expenditures by $100 billion. (C) Decrease personal income taxes by $20 billion. (D) Increase personal income taxes by $20 billion. (E) Purchase $20 billion in government securities in the open market.
Find out (i) if MPC is .75, what will be the MPS? (ii) if APS is .3, what will be the APC?