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

Q: An increase of $100 million in investment leads to a rise of $500 million in national income. Find…

A: The information being given is as follows:- Rise in investment = $100 million This change induces a…

Q: If an increase in investment spending of $50 million by Amgen, a biomedical company, results in a…

A: Expenditure multiplier shows the effect of an initial increase in autonomous spending on total…

Q: graph questions Ollow 45° AE = C + I 1200 450 300 900 1,300 Aggregate output, Y a. What is the value…

A: The present value of all finished products and services in the economy is referred to as aggregate…

Q: In an economy investment increases by 120 billion. The value of multiplier is 4. Calculate MPC.

A: Below is the given values: Increase in the investment = 120 billion Multiplier = 4 MPC = ?

Q: If the expenditure multiplier is 2.5 and the government spending increases by $4 billion, what would…

A: Given: Expenditure multiplier = 2.5 Government spending = $4 billion

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: The multiplier in the economy is 8.5 and the change in income is $3200 million What would be the…

A: The data being presented in the question is:- Multiplier = 8.5  Change in income = $3200 million…

Q: The marginal propensity to consume is 0.5. calculate the value of multiplier and marginal propensity…

A: Marginal propensity to consume is defined as the rate of change of consumption divided by rate of…

Q: Consumption = 115 + 0.6Y Investment = 550 What is the value of autonomous spending , the value of…

A: The economy will be in equilibrium when the sum of the consumption expenditure and the investment…

Q: What does the multiplier mean? Under what conditions can it work in an economy? What types of…

A: Meaning of Multiplier: The multiplier theory has given by Keynes that shows the importance to…

Q: When a business buys a new computer to design its product, this spending is called?   A. Goverment…

A: Expenditure- It is the amount that is spent on something. It is divided into four parts i.e.…

Q: In an economy the change in income is $6600 and change in investment is $3600 Calculate multiplier

A: The information being given is:- Change in income = $6600 Change in investment = $3600 We have to…

Q: Which of the following is an example of an investment expenditure? A   Steve purchases a new power…

A: Investment Expenditure is the expenditure on purchase of capital goods by individual, firm and…

Q: What is the expenditure multiplier in this economy? Planned Government Net Exports Aggregate Change…

A: Expenditure Multiplier refers to the ratio of the change in Gross Domestic Product to the change in…

Q: Aggregate expenditure is 790. Income is 730 and consumption is 720, income increases to 750 and…

A: “Hey, since there are multiple subpart questions posted, we will answer the first three subpart…

Q: 3. The Nottinghamshire Research Observatory in England calculated that students who attend…

A: In economics the multiplier effect refers to the proportional amount of increase, or decrease, in…

Q: The Nottinghamshire Research Observatory in England calculated that students who attend Nottingham…

A: Student spending multiplier = Total impact of their spending on the local economy / Initial total…

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: Give an example of any factor that influences the size of the multiplier?

A: There are various factors which affect the the size of multiplier.

Q: Siven: C= 300 + 0.75Y I= 400 G= 300 T=100 b) Calculate the value of multiplier for this economy

A: Multiplier represents proportionality factor that determines that how much does an economic variable…

Q: In Russia, the value of multiplier is 7  Calculate the value of MPS

A: The information being given is:- Multiplier = 7 Marginal propensity to save = ?

Q: Assume you have the following model of the expenditure sector: AD  = C + I + G + NX         C = Co +…

A: Given, The expenditure multiplier shows the responsiveness of expenditure due to a change in…

Q: Calculate multiplier if MPC is 0.77

A: The formula and calculation: Multiplier =11-MPC=11-0.77=4.34782609=4.35

Q: n Utopia (a country with substantial excess resources), consumers spend 70% of their incomes and…

A: Only the first three part have been solved.  (a) The commodity market equilibrium condition in case…

Q: Calculate multiplier if MPC is 0.75

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

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: 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: Consumption = 115 + 0.6Y Investment = 550 Use the above information to answer the questions that…

A: Given that: Consumption = 115 + 0.6Y Investment = 550 Consumption and investment are the…

Q: Answer the following questions and provide the necessary solutions. 1. Compute the multiplier if a)…

A: Multiplier represent how many time money multiplied in economy it depends upon the MPC , because MPC…

Q: . Calculate

A: Marginal propensity to consume (MPC) is being defined as the share of additional income which a…

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: As the MPC rises, the multiplier     falls     does not change     increases     falls by .05…

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

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: In an economy investment in increased by $10 billion. As a result income rises by $50 billion. What…

A: This multiplier is called as the Keynes Investment Multiplier and measures the relationship between…

Q: In an economy investment multipier increase by 120 billion. The value of multiplier is 4. Calculate…

A: The investment increase by = 120 billion Value of multplier (K) = 4

Q: What is meant by multiplier?Why shoul the value of multiplier rise when people spend more on…

A: In economics, a multiplier generally refers to an economic factor that induces or adjusts many other…

Q: Calculate the value of Multiplier if change in income is $2300 and the change in investment is $700

A: The data presented in the question above:- Change in income = $2300 Change in investment = $700  The…

Q: In an economy the change in income is $5000 and change in investment is $2000 Find the value of…

A: The information being given is:- Change in income = $5000 Change in investment = $2000 We have to…

Q: What is the value of the MPC? b. WhatisthevalueoftheMPS? c. What is the value of the multiplier

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Net exports = $ |billion Equilibrium GDP = $ |billion d. What is the multiplier in this example?

A: real Domestic output (GDP = DI) billions Aggregate Expenditure, Private Closed Economy,Billions…

Q: Briefly discuss the following concepts iv. Government expenditure multiplier v. Potential output

A: Economics is related to the production, distribution, and consumption of goods and services.

Q: If we observe that every increase in income of $120 million generates an increase in consumption of…

A: Given: The increase in income is = $120 million The increase in consumption = $80 million To Find:…

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 do you mean by multiplier

A: In macro economics, increase in final income arising from an injection of new demand is with…