Investment multiplier is given as 1.42 Calculate the MPS and also MPC

Q: Calculate the value of multiplier if MPS is 0.73

A: In a fractional-reserve banking system, a money multiplier is one of several closely related ratios…

Q: If the marginal propensity to save is low   a. The spending multiplier will be reduced b.…

A: In an economy, the marginal propensity to save refers to the amount of additional income that is…

Q: expenditure by 1,000. Calculate: (a) Investment Multiplier; (b) Marginal Propensity to Consume. In…

A: Investment multiplier: - it is a factor that shows the effect of the increase in investment on the…

Q: You are given the following information about a closed economy with no government: Consumption = 115…

A: A closed economy implies the economy which does not trade with any other country and thus whatever…

Q: In the income multiplier is equal to 4, then a $25 initial increase in government spending leads to…

A: The public authority spending multiplier impact is clear when a steady increase in spending prompts…

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

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Q: Find the value of the multiplier when the MPS equals to 0.70

A: Formula:  Multiplier = 1/(1-MPC)  MPC = 1- MPS

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: The value of the Multiplier decreases in only one of the following cases: O An increase in the…

A: Multiplier states the change in the variable due to  change in autonomous Variable.In terms of…

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: The autonomous expenditure multiplier that has the highest value is:    a) the net exports…

A: multiplier is used to determine how much an initial change in the variable affect  output. . The…

Q: Assume that the MPC is 0.70.  What is the income multiplier?   Question 46 options:   a)  0.3   b)…

A: MPC + MPS = 1 Where MPC is the marginal propensity to consumer  MPS is the marginal propensity to…

Q: In the first economy (with MPC = 0.5), the $20 billion increase in investment causes equilibrium…

A: There are two closed economy countries  1st with 0.5 MPC and $20 billion Increases in Investment2nd…

Q: If the marginal propensity to consume (MPC) is .75 for a closed economy, what is the multiplier…

A: Marginal propensity to consume refers to the change in consumption with respect to change in income.

Q: Find value of the multiplier if MPC = 0.5 MPS = 0.35

A: Marginal propensity to consume (MPC) is the ratio of the additional consumption to the additional…

Q: Calculate the value of multiplier if MPS is 0.43

A: The information given to us is as follows:- Marginal propensity to save = 0.43 We need to calculate…

Q: You are given the following information about a closed economy with no government: Consumption =…

A: Meaning of Money Supply: In general term, we usually use money supply to mean money circulation,…

Q: If the MPC = 3/5, then the government purchases multiplier is 5/3 5/2 5 1.5

A: Marginal propensity to consume is the proportion of the additional income used for the consumption…

Q: An economy is currently in equilibrium. The following figures refer to elements in its national…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: If the MPC is 0.75, then the multiplier is 4. Select one: True False

A: Given MPC = 0.75 Multiplier = 4

Q: Calculate Investment multiplier when MPS is 0.22

A: # We know that the reciprocal of MPS gives the investment multiplier.  Investment multiplier = 1/MPS…

Q: If investment increases by $300 and, in response, equilibirum real GDP increases by $600, the…

A: In an open economy, GDP is the sum of consumption, investment, government spending and the net…

Q: In each of the following cases, calculate the values of MPC, MPW, and the spending multiplier. Enter…

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

Q: In an economy, income rises by $10,000 as a result of rise in investment Expenditure by $1000.…

A: The given information is as follows:- Rise in income = $10,000 Rise in investment expenditure =…

Q: # When Marginal propensity to consume is 0 then the value of investment multiplier will also be 0.…

A: The economics as a study is based upon the decision making phenomenon where the entities in the…

Q: Given:  C = 100 + 0.75Yd;  I = 120 - 0.1Y – 200i; G= 40; T = 40  What is the autonomous spending…

A: The multiplier reflects how the change in expenditure would affect total expenditure and the…

Q: Suppose that there is an autonomous increase in investment spending of $20 billion and the MPC is…

A: Marginal propensity to consume is the change in consumption spending with change in disposable…

Q: If the value of marginal propensity to save is 0.8 what will be the value of investment multiplier?

A: Investment multiplier: - it is a factor that shows the effect of the increase in investment on the…

Q: ind the value of multiplier when the value of MPS is 0.891

A: Initially in the question, We have to find the value of multiplier = ? MPS = 0.891

Q: Explain briefly how spending can multiply, and then calculate the spending multiplier when the MPC…

A:

Q: Calculate the value of investment multiplier when MPS is given to be as 0.78

A: # A rise in the aggregate income of the economy if there is any investment taking place is…

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

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Q: Complete the following table by completing the multiplier for each MPC listed MPC - 0.17 MPC -…

A:

Q: The investment multiplier is:     negatively related to the MPS.     positively related to the…

A: The investment function shows the positive relationship between investment and income. It means as…

Q: Calculate the value of Investment multiplier when the value of MPS is 0.61

A: Investment multiplier shows the number of times an increase in investment spending increases the…

Q: Assume MPC = 0.7, MPM = 0.2 and the Keynesian expenditure multiplier is 1.75, then the MPT must…

A:

Q: Answer the following questions: Instructions: In part a, round your answers to 2 decimal places. In…

A: In an economy, the value of multiplier can be computed in two ways, such that: =1/(1-MPC) And,…

Q: Given an economy is currently producing at $1.2T rGDP, natural rGDP is $1.3T, and the MPC is 0.9,…

A: MPC is the marginal propensity to consume which is the percentage of change in income spent on…

Q: Calculate the value of MPS when the value of investment multiplier is given as 2.3

A: # The formula for investment multiplier is given as:- = 1/MPS  Thus it is the inverse of the…

Q: Consider the following closed economy model: C=500+0.2(Y-T) I=200 G=100 T=100+0.1Y Derive the…

A: Multiplier = 1.22

Q: Assuming that the MPC is 0.80, calculate the value of the government expenditures multiplier.

A: Given:- MPC=0.80 To calculate:- Government expenditure multiplier=? Please find the image attached…

Q: an open economy with government, the marginal propensity to consume is 0.67, the tax rate is 0.2 and…

A: Answer; Multiplier is 1.4 answer

Q: If the multiplier is 10,

A: For finding multiplier we use the formula Multiplier=(1/1-mpc)

Q: The marginal propensity to consume (MPC) is 0.75. The multiplier is (Round your answer to one…

A: Formula for multiplier=1/1-MPC.

Q: The value of marginal propensity to consume(MPC) is 0.61 Calculate the value of multiplier

A: Before preceding to the explanation and numerical part for our problem, let's first understand what…

Q: The multiplier process depicted in the following table is based on an MPC of 0.75. a. Recompute the…

A: Given, OPTION-1- MPC= 0.75 OPTION-2-MPC=0.95

Q: If the MPS is 0.5 then find the multiplier.

A: In Keynesian economics, the equilibrium level of output is attained at a point when the aggregate…