If the marginal propensity to consume is 0.95,Instructions: In part a, enter your response as a whole number. In part b, enta. What is the value of the multiplier?b. What is the marginal propensity to save?

Marginal propensity to consume (MPC) = 0.95The formula for the Keynesian multiplier is given by-…

Answered: a. What is the value of the multiplier?…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

What is the relationship between the MPC and the multiplier?
What is multiplier? Explain its forward and backward working
What is the negative effect if multiplier increases?
There might be many factors (economic and non-economic) that affect the size of the multiplier. What are some that you think could influence its size? Which ones do you think would make it larger, and which are more likely to make it smaller?
Multiplier Effect Question, Initial investment of 2 billion and getting 9 billion in total revenue after reinvestment
How to find the simple investment multiplier and what is its Equation and an example
What is individual Marginal Propensity to Consume and Marginal Propensity to Save? please provide an example for each.
Spending Round by Round Complete the following questions. 1. Assume the MPC is 0.75. What is the value of the multiplier? What is the MPS? What would need to happen to make the multiplier larger? 2. Assume investment spending increases by $20 billion and the MPC is 0.75. Calculate the first through the fourth rounds of spending in the economy. 3. Assume investment spending increases by $20 billion and the MPC is 0.75. Calculate the total change in GDP arising from this increase in investment spending.
jon was given a $2000 stimulus check. He will spend 75% of his money(which is 1500$). The next person will spend 75% of the 1500$ and so on and so forth. 1)How much total expenditure will result from the 2000$ stim check? 2)calculate the value of the multiplier.
What will be the impact on the spending multiplier if the marginal propensity to save (MPS) increases? A.The spending multiplier will increase. B.The spending multiplier will remain unaffected. C.The spending multiplier will decrease. D.The impact on the spending multiplier cannot be determined.
Explain carefully how the multiplier works, defining the multiplier as part of your explanation. If the marginal propensity to save is smaller, explain carefully and fully how this affects the size of the multiplier.
What do you mean by multiplier

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

a. What is the value of the multiplier? b. What is the marginal propensity to save?