The Finance Minister in Canada asked a policy analyst the following question "what value can the multiplier take on" Select one: а. only between zero and 1 b. greater than zero С. only greater than 1 d. only between 1 and 2 е. only between -1 and 1
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: Income and Expenditure Work It Out: Question 4 of 4 Recall that the consumption function is C = $100…
A: Equilibrium in the economy is reached where planned aggregate spending is equal to income.
Q: Given consumption = 100 +0.75Yd Tax = 50 + 0.5Y Export = 200 Import = 50 + 0.25Y Government…
A: The disposable income Yd is; Yd=Y-Taxes=Y-50-0.5Y Yd=0.5Y-50
Q: Use the information in the table to answer the following questions. All numbers are in billions of…
A: Aggregate spending is the sum of consumption, investment, government spending and net exports in an…
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…
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A: The economics a study is based upon the idea that the resources which are present with the economies…
Q: graph questions Ollow 45° AE = C + I 1200 450 300 900 1,300 Aggregate output, Y a. What is the value…
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Q: If government increases both taxes and government spending by 100 units how much does equilibrium…
A: Aggregate Expenditure = Consumption + investment = government spending + net export
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A: Given information: C = 250 + 0.6(Y-T) --------> Consumption function T=15 + 0.05Y…
Q: Answer the next questions on the basis of the following information about a two-sector economy: Item…
A: In the above questions, we have used the formula : MPC = ∆C / ∆ Y Multiplier = 1/ 1- MPC
Q: The basic idea behind the multiplier is that an increase in GDP brings about an additional, larger…
A: Let I0 , G0 , and NX be the autonomous investment, government spending and net export of an economy…
Q: The value of multiplier depends on the _____
A: Multiplier refers to the magnitude by which the equilibrium output changes due to a change in…
Q: Using graphs show us what happens to P ,Y and the size of multiplier when a. SRAS is vertical b.…
A: AD shock when SRAS is vertical: As can be seen by the diagram, the initial equilibrium is at…
Q: Suppose the United States economy is repre- sented by the following equations: Z = C +…
A: Here, given information is: Z = C + I + G C = 500 + 0.75YD T = 600 I = 300 G = 2000 YD = Y − T
Q: Calculate the Marginal Propensity to Consume and the Marginal Propensity to Save. Fill in the blanks…
A: Saving(S)If nation income (Y) is $9,000 and the consumption (C) is $8,000, then the saving (s) can…
Q: C = 450 + 0.4Y I = 350 G = 150 X = 70 Z = 35 + 0.1Y T = 0.15Y Yf = 1550 Q.2.2 Calculate the size of…
A: The multiplier is change in the aggregate income due to injection or withdrawal in the economy.
Q: In order for the economy (GDP) to be grow and take advantage of the multiplier effect, which one of…
A: As a particular product is manufactured, cost is initiated and process of business is started.…
Q: What is the multiplier effect and how is it beneficial to the economy?
A: The multiplier effect shows the change in final income due to an injection of spending. For example,…
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: Question 52 ( Which of the following combination will have the highest multiplier? Mpc - 0.90 t=…
A: The economies tend to have various entities, which are in the form of households, firms, investors,…
Q: a. What will the multiplier be given the MPS values below? Fill in the table with your answers. MPS…
A: * SOLUTION :-
Q: Suppose an economy is described by the following equations: Y = C + I + G + X – M C = 14 + 0.60Yd…
A: Given Information: Domestic income, Y = C + I + G + X – M Aggregate consumption spending, C = 14…
Q: Assume that Sweden has a closed economy where consumption function is " C = 400 + 0.6 Yd ", net tax…
A: t: Tax rate = 0.3 MPC: Coefficient of Yd = 0.6 Thus, Multiplier = 1 / [1 - MPC x (1 - t)]
Q: following graph shows the total expenditure line (TE) for an economy where current equilibrium…
A: Real GDP is where demand and supply meets. athus, real GDP = $400 Billion as potential GDP is less…
Q: Calculate the value of multiplier if change in income is $1100 million and the change in investment…
A: The information being given is:- Change in income = $1100 million Change in investment = $350…
Q: If the current value of GDP is $13.28 trillion and the government is planning to increase spending…
A: Dear student since the value of multiplier is not mentioned in the question, I have solved it with…
Q: Consider a hypothetical economy where there are no taxes and no international trade. Households…
A: Since you have asked many questions at once. Due to our authority guidelines we can only provide you…
Q: An Economy has no imports or taxes, the MPC is 0.90 and real GDP is $12 trillion. If businesses…
A: Answer: Given values: MPC(marginal propensity to consume)=0.90GDP=$12 trillionIncrease in business…
Q: What is the value of multiplier?
A: Multiplier depicts the change of one factor on the other with different amounts. The multiplier can…
Q: What is the minimum value of multiplier?
A: The multiplier is given by the formula:- k = 1 / ( 1 - MPC ) Where MPC is the marginal propensity to…
Q: The multiplier for the economy in the above diagram: a. is 3 b. is 4.8 C. is 4 d is 5.2
A: The measure that depicts the final value of goods and services being produced in a year during an…
Q: C = 160 + 0.7YD, T= 100, I= 150, G= 150, NX = 100 – 0.1Y. a. What is disposable income (YD)? b. What…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Suppose the following equations represent an economy. What is the multiplier for this economy? Z = C…
A: In macroeconomics, a multiplier is a factor of proportionality that calculates how much an…
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: Aggregate Expenditures and Multipliers Assignment a. Using the aggregate expenditure function…
A: Answer: (a). The current level of real GDP is that where the 45-degree line and the aggregate…
Q: In a certain economy, when income is $200, consumer spending is $145. The value of the multiplier…
A: The marginal propensity to consume is the proportion of the disposable income that a person wants to…
Q: Is the relationship between changes in spending and changes in real GDP in the multiplier effect a…
A: Spending are broadly classified into three parts. I) Consumption Spending II) Investment Spending…
Q: If the value of MPS and MPC is same. What will be the value of multiplier
A: The information being given to us is as follows:- The value of Marginal propensity to save and…
Q: at is multiplier? Explain its forward and backward working
A: Ans in step 2
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: We know the following about a closed economy: (Y-T), • Consumption: C = 20 + 0.7 • Investment: I =…
A: Government expenditure is the amount of money that government spends on the development of…
Q: You are given the following information for the economy of Datalink: C = 250 + 0.85Yd T = 150 + 0.5Y…
A: Disclaimer:- Since you have posted a question with multiple sub-parts, we will solve first three sub…
Q: In the country of Guadelope, in 2019 GDP increased by $8 million. In the same year, the level of…
A: Multiplier shows the change in investment due to change in income , so here we calculate the value…
Q: What will an increase in the tax rate cause? A decrease in the spending A multipliers An increase in…
A: In an economy, marginal propensity to tax refers to the proportion of income that is taken out to…
Q: The multiplier is Multiple Choice 1/(1 MPC. 1/MPS. 1/(1- MPS). 1/MPC.
A: The multiplier is defined as the change in income of the household to the permanent change in the…
Q: If y = C+I where C 50+.75 Y and I 50 What is Y, C, and the multiplier? What if instead I= 50 +.05Y?…
A: At the Equilibrium Y = C+I As given C =50+0.75Y I = 50
Q: In an economy with no government and no foreign sectors, autonomous consumer spending is $250…
A: The income-expenditure equilibrium occurs when the aggregate quantity demanded by the key sectors…
Q: Consider a hypothetical economy where there are no taxes and no international trade. Households…
A: (1) MPC = $0.60 / $1 = 0.60 Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.6) = 1 / 0.4 = 2.5
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
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- The cost of rebuilding the Philippines after typhoon Haiyan could reach USD 5.8bn”, a senior official has said. Assume the government of Australia Department of Foreign Affairs and Trade provided a grant of USD 5.8 billion. Also assume that despite the hardships the Philippine families experienced, 15% was the beneficiary savings from the Australian grant. Further, assume all other factors remain constant.a. Calculate the total effect of the spending multiplier of the Australian government grant on the Philippine economy GDP growth. b. Examine the overall multiplier effect of the USD5.8 billion grant on the Philippine economy. Answer asap n correctly with proper typed explanationPlease read the New Item:‘Covid-19 has crushed everybody’s economy – Except for South Korea’s’, Foreign Policy, September 16, 2020 What is multiplier? How does it work? Do you think it worked in South Korean Case?The multiplier can be defined as: Select one: A. The ratio of the rise in national income to the rise in injections that caused it B. The ratio of the rise in government expenditure to the resulting rise in national income C. The ratio of a rise in investment to the resulting rise in withdrawals D. The ratio of a change in injections to a change in withdrawals
- The graph below illustrates the money demand and investment demand for the economies of Pabst and Kokanee. Interest rate Interest rate 15 13 11 9 5 3 1 15 13 11 9 5 3 1 70 60 80 70 90 80 100 110 120 Quantity of money 90 100 110 120 Quantity of money MD MS MS MD Pabst Interest rate Kokanee Interest rate 12 10 8 6 4 12 11 10 9 8 6 5 4 3 0 0 10 10 20 30 40 50 60 Quantity of investment 20 30 40 Quantity of investment 50 70 4 (60,8) 60Study the graph below. When will the multiplier be biggest? Price Level AD1 AS AD3 AD2 GDP Select one: a. When aggregate demand is at AD3 b. When aggregate demand is at AD2 c. When aggregate demand is at AD1 d. The multiplier will be the same size no matter what Aggregate Demand is ○ e. The multiplier will be one no matter what aggregate demand isthe following macro mo det consumptron : c • C' +cYq and Ya = do posable income Desine d Investment: = I' +jY Government Expenditure s. G =G'+gy Exports = EX : X' IM =F' Imports Taxes : T:T't tY a) what is the equation for y" for this economy? b) Derive for this each of the following multipliers economy. ) Ke' 5) Kpi 2) k 6) Kx' 3) KG' 7) Kg8 "BB 4) Kpi 2 why Might one that the is argue 1 probably a 2 vavia b le g number ? hegathe
- 1) Assume that Canadian government taxes away $0.15 of each dollar of new income, that 35% of the remaining $0.85 of disposable income is spent on imports, and that 2% of disposable income is saved. Enter your responses below rounded to 2 decimal places. a. The marginal propensity to withdraw is . b. From each new dollar of income $ is spent on domestic consumption items.c. The value of the Canadian spending multiplier is . 2) In each case below a particular fiscal policy affects an economy's AD curve via the spending multiplier. Calculate the spending multiplier and find the direction and size of the shift in the AD curve. Enter your responses for the spending multiplier rounded to 2 decimal places, and size of the shift of the AD curve rounded to 1 decimal place. Do not put minus signs in your answers. a. If government purchases increase by $3 billion in an economy with an MPW of 0.65 then the spending multiplier is and the AD curve finally shifts to the by $…Assuming there is no government or foreign sector, if the multiplier is 5, the MPC is Select one: a. 0.4. b. 5. C. 0.8. d. 0.5.The initial deposit is $400 and the multiplier is 10 Calculate total deposit
- 10. T/F/U. Fear of a recession causes a decrease in investment spending—I— which in turn impacts v. Draw a graph consistent with your answer.Assuming no govemment or foreign sector, if the MPC is 0.5, the multiplier is Select one: a. 5. stion O b. 2. c. 0.5. 0.5. d. 0.2.What is the minimum value of investment multiplier?