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

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Jhon 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.
For each of the following, please explain each step and show it in the graph! b. The Marginal Propensity to Consume (MPC) is 0,8 and the government wants total spending to increase by $40 Billion. How much the multiplier and initial spending must the government do to achieve the goal? (Assume economy is at full employment and economist ignore possibility of crowding out effect)
I'm doing economics homework and I'm being asked to find the multiplier when the MPS is 0.12 and MPC is 0.88. I'm trying to follow the formula and not sure where I'm getting lost.
Use the diagram to the right to answer the following: a. The equilibrium value of real GDP is $ trillion. (Enter your response as a whole number.) b. The MPC is equal to (Enter your response rounded to two decimal places.) c. The multiplier is equal to (Enter your response rounded to one decimal place.) d. What is the value of unplanned changes in inventories when real GDP has each of the following values? (Enter your responses rounded to one decimal place and include a minus sign if necessary.) GDP $10 trillion $12 trillion $14 trillion Unplanned Inventories trillion trillion trillion C Aggregate Expenditure, AE ($, trillions) 24.0- 22.0 ≈ ≈ ¦ CO 20.0- 18.0- 16.0- 14.0- 12.0+ 10.0- 8.0- 6.0- 4.0- 2.0- 0.0- O. 13.6 12.0 10.4 0 45° -~ 2 4 AE 10:12:14 10 12 14 16 18 20 22 24 6 8 Real GDP, Y ($, trillions) G
Explain the concept of the 100X Multiplier using the idea of diminishing marginal utility.
Which of the following would be most likely to increase consumption spending? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a A reduction in consumer credit card debt b A drop in stock prices c A higher interest rate d The expectation of lower future prices
A) What is the value of the marginal propensity to consume? ( Round your answers to one decimal place). What is the value of the marginal propensity to save? B) What is the break-even level of income in the table? (Enter your answer as a whole number) What is the term that economists use for the saving situation shown at the $ 240 level of income. C) For each of the following items, indicate wheter the value in the table is either constant or variable as income changes: The MPS is (constant/ variable) as income changes. The APC is ( constant/ variable) as income changes. The MPC is ( constant/ variable) as income changes. The APS is (constant/ variable) as income chnages.
Calculate the value of multiplier if change in income is $1100 million and the change in investment is $350 million
In an economy investment increases by 120 crores. The value of multiplier is 4. Calculate the marginal propensity to consume.

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