If MPC was equal to 0.5, would doubling your income double your consumption spending

Q: So, let's consider again our problem from before. Given the necessary increase in GDP of $360 and…

A: Gross domestic product is the total market value of all the services and finished goods being…

Q: QUESTION 13 If the consumption function is: C - 0.68(Disposable Income) + 400, the MPC- and…

A: Given: C= 0.68(Disposable income)+400

Q: What would be the value of APC if Consumption is $3300 and income is $10,000

A: The data presented in the question above is:- Consumption = $3300  Income = $10,000 We need to…

Q: Find the disposable income when the consumption is $210 in the saving our $ 190

A:

Q: Find the value of the multiplier when the value of MPC = 0.66

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Q: In an economy MPC equals to 0.2 if the investment increases by $ 100 billion calculate the increase…

A:

Q: Level of investment goes up by 200. What happens with the level of GDP if you know that MPC = 0,8…

A: It is given that MPC=0.8 t=0.1

Q: Calculate the value of the hvestment multiplier when MPC is given 0.90

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Q: Find Multiplier if the value of MPC is 0.65

A: The data presented in the question above is:- Marginal propensity to consume = 0.65  Multiplier is…

Q: Find out the value of the multiplier if the MPC is zero?

A: Generally in the given question, MPC is = zero MULTIPLIER = ?

Q: Suppose two successive levels of disposable personal income are $16 and $21 billion, respectively,…

A: The marginal propensity to consume is a statistic that quantifies induced consumption, which…

Q: If an economy’s spending multiplier is equal to 4, what is its MPC and MPS?

A: The marginal product of consumption (MPC) measures the change in consumption due to a change in…

Q: an increase in MPC, reduces the multiplier? true or fulse

A: The marginal propensity to consume is the concept which explains the increase in the consumption…

Q: If in an economy MPC is 0.8 and investment increase by $10 billion. Calculate the increase in…

A: The marginal propencity to consume (MPC)  = 0.8 Increase in investment = $10 billion

Q: Find the value of multiplier when MPC is equals to 0.70

A:

Q: Find the value of the multiplier when the MPS equals to 0.70

A: Formula:  Multiplier = 1/(1-MPC)  MPC = 1- MPS

Q: Is the mpc in the multiplier .75?  only because multiplier is 1/(1-mpc) which would make sense for…

A: In the original question, MPS has given by stating "average households will save 25 cents of every…

Q: Find multiplier if MPC is 0.2

A: Given: MPC is 0.2

Q: what is held constant along the consumption function.

A: The only part is constant in the consumption function is autonomous consumption which is…

Q: If private investment increases by $1, real GDP increases by $4. What do we call this in economics?…

A: Real GDP is calculated as a sum of consumption, investment and  government purchases in the closed…

Q: MPC in an economy is 0.8. if investment is increased by dollar 5 million, how much would be increase…

A: Below is the given values: Increase in investment = 5 million Marginal propensity to consume = 0.8…

Q: How much of a change in GDP will result if firms increase their level of investment by $8 billion…

A: To determine the change in GDP resulting from an increase in investment, we can use the concept of…

Q: Find the value of MPC when multiplier is stated as 0.97

A: MPC or the marginal propensity to consume is the percentage of consumer's income that the consumer…

Q: The government of a country decides to double its current level of spending, causing real GDP to…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: If MPS = 0.83  Calculate MPC

A: In the above given question we are given the value of MPS to be as 0.83 We have to calculate the…

Q: Find the value of change in income if change in consumption is $600 and MPC is 0.67

A: According to the above given question, the information given is as follows:- Change in consumption =…

Q: Assume taxes are zero and an economy has a consumption function of C = 0.80 (Yd) + $879.06. How…

A: The consumption function depicts the relationship among the disposable income and consumption; while…

Q: The value of MPC is 0.21 Find the value of MPS

A: # The relationship between MPS and MPC is :- MPS = 1 - MPC This is because the sum of MPS and MPC is…

Q: If the multiplier is 5 , what is the marginal propensity to save (MPS)? 5 0.20 0.80 0.50

A: The value of multiplier is given to be as = 5  We have to calculate the value of marginal propensity…

Q: Suppose the government seeks to achieve a balanced budget by levying taxes of $50 billion and making…

A: If MPC=0.8 then  MPS=1-MPC MPS=1-0.8 MPS=0.2

Q: Calculate the Multiplier when the MPC is 0.97

A: Generally in the given question MPC is stated as = 0.97 Value of the multiplier needed to be…

Q: If government spends $10B and the MPC in the economy is .8.  What will be the total change in GDP?

A: A multiplier is a term used in economics to describe an economic factor that, when increased or…

Q: If MPC Is 0.5 so what is MPS ( define as well)

A: A person's disposable income is divided into two parts: consumption and saving. Savings are also…

Q: In an economy the value of MPS is given as 0.72  Calculate the value of multiplier

A: We are given that the value of Marginal propensity to save is 0.72 We have to calculate the value of…

Q: In an economy, when the PAE= 400 +.5Y, the income- expenditure multiplier equals:

A: A macroeconomic term known as an income-expenditure multiplier quantifies the effect of changes in…

Q: If the value of investment multiplier is 1 what will be the value of MPC

A: The information being provided is:- Investment multiplier = 1 MPC = ? We have to find the value of…

Q: Calculate change in consumption when change in income is $300 and the MPC is 0.42

A: The information being given is as:- Change in income = $300  MPC = 0.42 Change in consumption = ?

Q: Suppose the MPC = 0.6.  If income increases by $100 billion, by how much would consumption change?…

A: MPC = 0.6 If income increases by $100 billion