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- Formula for open economy multiplierWhat is the value of multiplier?Use the diagram to answer the question which one of the following will increase the size of the multiplier? A. an increase in the level of net exports B. An increase in the marginal propensity to consume C. an increase in the marginal propensity to save D. a reduction in the level of government spending
- The following information is provided about an open economy with a government. Use the information to answer the questions that follow:C = 375 + 0.6YI = 200G = 150X = 50Z = 30 + 0.1YT = 0.15YYf = 1 335.10 Show all your formulasQ.1.1 Calculate the level of autonomous spending in this economy. (2)Q.1.2 Calculate the size of the multiplier.(Note: Round your answer to two decimal places.)(3)Q.1.3 Calculate the equilibrium level of income. (2)Q.1.4 Calculate the change in government spending required to reach full employment in the economy.(3Which best describes why the multiplier existThe following information is provided about an open economy with a government. Use the information to answer the questions that follow:C = 450 + 0.4YI = 350G = 150X = 70Z = 35 + 0.1YT = 0.15YYf = 1550 Calculate the size of the multiplier(Note: Round your answer to two decimal places)
- View History Bookmarks Tools Window Help Coy, Jonnifer - Outlo X C Martin County School District X S MyPath - Home Content https://ezto.mheducation.com/ ext/map/index.html?_con%3Dcon&external_browser%3D0&launchUrl=https%25 Saved Level of Output and Income (GDP= DI) Consumption Saving APC APS MPC MPS S480. $-16 520 560 16 60 32 640 48 680 64 720 80 760 96 800 112 Des Instructions: Enter your answer as a whole number. b. What is the break-even level of income in the table? What is the term that economists use for the saving situation shown at the $480 level of income? (Click to select) Y c. For each of the following items, indicate whether the value in the table is either constant or variable as income chanc The MPS: (Click to select) The APC: (Click to select) The MPC: (Click to select) The APS: (Click to select) aw Prev 1 of 1 JAN 11 %24True/False and Explain An increase in savings implies a decrease in consumption and therefore a decrease in GDP.An increase in savings implies a decrease in consumption and therefore a decrease in GDP.True/False and Explain .
- Given the following on a closed economy, determine the following The level of Private savings The level of Public savings The level of national savingExplain and compare the following terms: Saving intensity and break-even investment intensity.What does the multiplier mean? Under what conditions can it work in an economy? What types of multipliers can we talk about in the economy? How do these work individually?
