22. If the spending multiplier is 1.3 and consumer spending increases by $1 billion, how much does overall spending go up (including the initial billion)? Cons Spending $50,000 $40,000 $30,000 $20,000 $50,000 Disposable Income
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- 5. The multiplier effect of a change in government purchasesIf the government 40 M on building a new highway calculate the multiplier and total new income qiven the following. MPC .85 MPS .1 MPC .6 Multiplier 4.8consumer's expenditure minimization problem explain in detail both theoretically and practically ?
- Find the multiplier effect. when the consumer spends 0.6 and save 0.4 of every 1 SAR of extra income. a. if MPC -0.2 b. if MPC-0.3 Cif MPC -0.4 d. if MPC-0.5 e. if MPC-0.6 6. if MPC -0.94. Given this diagram; what is the equilibrium level of income? 5. Given this diagram; what is the level of "autonomous spending"? 6. Given this diagram, what is the simple income multiplier?Tax Revenue ($) 50 NE 40 30 20 10 0 20 40 60 According to this Laffer curve, should the government increase the tax rate from 4C 80 Tax Rate (%) 100 O a.) Yes, because the tax revenue continues to increase after a tax rate of 4C b.) No, because the government should increase the tax rate to 100%. c) No, because the tax revenue is no longer maximized. NVIDIA G SYNE d.) Yes, because the government will receive a higher tax revenue. O
- Which of the following will raise consumer expenditures, C? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с d a general increase in housing prices. an increase in interest rates. an increase in expected future income. an increase in the price level.Yd Consumption Expenditure $ 0 $ 6,000 $ 10,000 $ 14,000 $ 20,000 $ 22,000 $ 30,000 $ 30,000 $ 40,000 $ 38,000 $ 50,000 $ 46,000 Calculate MPC, MPS, and Multiplier How much equilibrium level of income will increase by if autonomous Investment of $4,000 was made?Yd Consumption Expenditure $ 0 $ 6,000 $ 10,000 $ 14,000 $ 20,000 $ 22,000 $ 30,000 $ 30,000 $ 40,000 $ 38,000 $ 50,000 $ 46,000 Determine break even level of income Determine autonomous consumption If your income level were $30,000, how much would you save? Calculate MPC, MPS, and Multiplier How much equilibrium level of income will increase by if autonomous Investment of $4,000 was made?
- During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this economy is known to be equal to 10.Which of the following might have caused the increase in real GDP? Question 12Answer a. Exports increased by $0.3 billion. b. Investment decreased by $0.3 billion. c. Exports decreased by $0.3 billion. d. Imports increased by $0.3 billion. e. Government expenditure on goods and services increased by $3 billion.Find the multiplier effect, when the consumer spends 0.6 and save 0.4 of every 1 SAR of extra income af MPC-0.2 bif MPC 0.3 cif MPC 0.4 d. if MPC-0.5As the multiplier process is working on the demand side, a. firms will meet the additional demand without raising prices. b. firms will not meet the additional demand. c. firms will meet the additional demand only by raising prices. d. the multiplier process will cease creating demand