If the multiplier is 5, then the MPC is Answer 0.05 0.5 0.6 0.8   Question 43 In a certain economy, when income is $200, consumer spending is $145.  The value of the multiplier for this economy is 6.25.  It follows that, when income is $230, consumer spending is Answer $151.25. $166.75. $170.20. $175.00.

Q: nultiplier the multiplier emains the same. remains the same. lecreases. decreases. ncreases.…

A: A) OPTION C IS CORRECT

Q: Suppose there is some hypothetical closed economy in which households spend $0.75 of each additional…

A: The aggregate demand/aggregate supply model is a model that shows what decides total supply or total…

Q: If taxpayers are known to save 7% of any additional money they receive, and to spend 93%, how much…

A: I am answering this according to a $10 tax cut as you have mentioned both $8 and $10 in the…

Q: Suppose the MPC is .6 and consumption increases by $8 billion. Consequently, total income through…

A: Given information, Change in consumption: $8 billion (increase) MPC: 0.6 Find: change in total…

Q: Find the value of the multiplier when the value of MPC = 0.66

A:

Q: Germany injects $100 into the United States by purchasing new software. If the spending multiplier…

A: The spending multiplier means initial rise in the expenditure causes multiple rise in the income…

Q: If a $20 increase in disposable income causes consumer spending to rise by $4, what is the…

A: The economics a study is based upon the idea that the resources which are present with the economies…

Q: Working with Multipliers Help with the following two exercises. 1. Assume the MPC is 0.70 and the…

A: 1. Multipliers (M) explain the overall change in real GDP (Y) caused by an initial change in a…

Q: Calculate MPS if it's given that multiplier is 7.9

A: The data presented in the question is as follows:- We are given with the value of multiplier which…

Q: a. What is the value of the multiplier? b. What is the marginal propensity to save?

A: Marginal propensity to consume (MPC) = 0.95The formula for the Keynesian multiplier is given by-…

Q: If an economy’s spending multiplier is equal to 4, what is its MPC and MPS?

A: The marginal product of consumption (MPC) measures the change in consumption due to a change in…

Q: now the impact of the increase in government purchases on the interest rate by shifting one or both…

A: Answer - Monetary Policies :- These are the policies which is used by the Central Banks of…

Q: 2. a. b. Write the formulae for calculating the expenditure multiplier and the change in real Gross…

A: A detailed answer is given above.

Q: Is the mpc in the multiplier .75?  only because multiplier is 1/(1-mpc) which would make sense for…

A: In the original question, MPS has given by stating "average households will save 25 cents of every…

Q: If the MPC were equal to zero, the expenditure multiplier would be *   a. Less than zero b. zero c.…

A: Marginal propensity to consume (MPC) measures the change in consumption due to change in disposable…

Q: The multiplier is related to the marginal propensities. The MPC is (directly, inversely) related to…

A: The multiplier is related to the marginal propensities. The MPC is directly related to the size of…

Q: If the multiplier is 5 , what is the marginal propensity to save (MPS)? 5 0.20 0.80 0.50

A: The value of multiplier is given to be as = 5  We have to calculate the value of marginal propensity…

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: 3. The spending multiplier effect Consider a hypothetical economy. Households spend $0.60 of each…

A: It can be defined as a concept that helps in measure the impact of an initial change in spending on…

Q: 9. With these equations: C = 230 +0.6671 I = 470₁ 6=280-0.137₁ X=470, M=555, land += 13+6.25× What…

A: The government expenditure multiplier in economics will be calculated as the ratio of change in…

Q: Consider a hypothetical economy. Households spend $0.50 of each additional dollar they earn and save…

A: In a hypothetical economy, a household spends $0.50 of each additional dollar they earn and saves…

Q: Consider a hypothetical economy. Households spend $0.90 of each additional dollar they earn and save…

A: The total of net exports, government spending, investment spending, and consumption spending is…

Q: In an economy the change in income is $2300 and change in investment is $700   What will be the…

A: We know that investment multiplier can be calculated as  Investment multiplier = change in income /…

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 the value of MPC if the multiplier is given to be as 1.4

A: The value of multiplier is given as:- MULTIPLIER = 1 / Marginal propensity to save Also we know…

Q: Consider a hypothetical economy in which households spend $0.50 of each additional dollar they earn…

A: Marginal propensity to consume (MPC) is portion of additional income that household spends on…

Q: Find the value of change in income if change in investment is $200 and Multiplier is 6

A: The information being given is:- Change in investment = $200 Multiplier = 6 Change in income = ?

Q: Suppose when income increases by $5,000, there is an increase in consumption of $3,000. a. Calculate…

A: The multiplier effect in AD-AS framework: The main idea behind the multiplier effect is that an…

Q: 11. What is the multiplier?

A: A government spends capital on the delivery of products and services essential for the well being of…

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 MPC, MPS and the Multiplier if consumption expenditure increases by $4,000 as a result of…

A: MPS+MPC =1

Q: In the country of Krugman, a business spent $100 million building a factory. GDP eventually…

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