an Learning What is the eventual effect on real GDP if the government increases its purchases of goods and services by $60,000? Assume the marginal propensity to consume (MPC) is 0.75.

Question 3 of 16 Income and consumption changes for five people are shown in the table. Given this information, rank the marginal propensities to consume (MPC) for the five people from largest to smallest. Largest MPC   Smallest MPC   Answer Bank Bert Doug Eli Carter Al     Name Income change Consumption change Al +$5,000+$5,000 +$3,000+$3,000 Bert +$2,500+$2,500 +$800+$800 Carter +$1,000+$1,000 +$800+$800 Doug −$2,500−$2,500 −$1,750−$1,750 Eli −$5,000−$5,000 −$2,000−$2,000

3. When the following event occurs, the change in Real GDP = Event: The government increases its education funding by $60 billion; the marginal propensity to consume is 0.6. the multiplier.

Macroeconomics: Assuming marginal propensity to consume is 0.5. If there is a shock to the economy that increases investment spending by 200 billion dollars what will the total Change to GDP be? (Ignore taxes and imports)

Explain the effects of the following actions on equilibrium income, assuming that the marginal propensity to consume is 0.8 A. Government purchases rise by $40 billion B. Taxes fall by $40 billion.

How does the marginal propensity to consume (MPC) determine how GDP responds to policy changes? If we want MPC to be high, what implications does this have for how we should design policies?

In an economy the value of Marginal propensity to save Is 0.21 Calculate the value of Marginal propensity to consume

What is the consumption function? What is the marginal propensity to consume? What does an upward-sloping consumption function mean?

The tax rate is 0.4. The marginal propensity to import is 0.5 . When real GDP increases from $20,000 to $20,198, consumption increases from $18,000 to $18,050. What is the marginal propensity to consume?

The tax cuts of 2017 increased the 2018 disposable income of households by roughly $200 billion. If the MPC were 0.65,   Instructions: Enter your responses as a whole number.   a. how much of this windfall was initially saved?        $  billion   b. how much AD stimulus resulted over time after all multiplier effects?        $  billion When I work through (b), I get the answer of 1300 billion, but it state it is incorrect.