each of the following cases, calculate the values of MPC, decimal places. PW, and the spending multiplier. Enter your responses below rounded to 2 MPW is a. A $6 million increase in income leads to a $900,000 rise in consumption on domestic items. MPC is therefore [ and the spending multiplier is [ b. A $8 million decrease in income results in a $0.8 million drop in consumption on domestic items. MPC is therefore and the spending multiplier is( MPW is c. A $4 million decrease in income causes a $3.2 million drop in withdrawals. MPC is therefore spending muitiplier is [ MPW is and the

In an economy, income rises by $10,000 as a result of rise in investment Expenditure by $1000.  Calculate (A) Investment multiplier  (b) MPC

Suppose that an economy consists of only two individuals. Trevor has $1150 available to spend on goods. He decides to purchase $210 worth of produce from Juanita in the current quarter. No other economic activity takes place during the current quarter. Using this information, answer the questions. For the current quarter, what is the economy's income? $ For the current quarter, what is the economy's expenditure? In an economy, how are income and expenditure related? Income is greater than expenditure. O Income is less than expenditure. They are unrelated. O They are equal.

In each of the following cases, calculate the values of MPC, MPW, and the spending multiplier. Enter your responses below rounded to 2 decimal places. a. A $2 million increase in Income leads to a $700,000 rise in consumption on domestic items. MPC is therefore and the spending multiplier is b. A $10 million decrease in income results in a $3 million drop in consumption on domestic Items. MPC is therefore and the spending multiplier is c. A $10 million decrease in income causes a $9 million drop in withdrawals. MPC is therefore spending multiplier is MPW IS MPW IS MPW IS and the

Which of the following is true: a) at equilibrium aggregate expenditure is greater than gross domestic expenditure. b) at equilibrium GDP is greater than gross domestic expenditure. c) at equilibrium aggregate expenditure is smaller than gross domestic expenditure. d) at equilibrium GDP is smaller than gross domestic expenditure or e) at equilibrium both aggregate expenditure and GDP are smaller than gross domestic expenditure

A marketer wants to run pre-roll video ads on YouTube before videos for local music artists. What are the options? A sponsored ads, sponsored cards, and sponsored keyword ads. B bumper ads, non-skippable video ads, and skippable video ads. C display ads, non-skippable video ads, and sponsored cards. masthead ads, pay-by-impression ads, and bumper ads.

What is the difference between tax cuts imposed on higher-income households compared with lower- and middle-income households? Discuss the implications for the multiplier and the effectiveness of the tax cuts for boosting GDP.

If changes to expenditures include consumption at $2000, investment at $600, government spending at $500, exports are $100, imports are $200 and the mpc is 0.75, then: equilibrium income is $3000 the equilibrium income is $12,000 the multiplier is 5 O the slope of the AE curve is 0.25

Which of the following is a true statement about the multiplier? The multiplier rises as the MPC rises. The smaller the MPC, the larger the multiplier. The multiplier is a value between zero and one. The multiplier effect does not occur when autonomous expenditure decreases.

Below is some data for a hypothetical economy: C = -232 + 0.8Y XN = 107 - 0.1Y I = 100 T = 340 G = 340 Refer to the information above to answer this question. What is the value of the expenditure multiplier? a. 1.43 b. 4 c. 3.33 d. 2.43