If output is above the level of spending balance, then A income will increase. В the marginal propensity to consume will increase. C the marginal propensity to consume will decrease. income will decrease

2. Determine the multiplier and the net effect of the following autonomous changes in spending: a. An influx of $100 billion in government spending when the marginal propensity to consume is 0.75. b. An influx of $250 billion in business investment when the marginal propensity to consume is 0.5. C. An influx of $180 billion in export sales revenue when the marginal propensity to consume is 0.8.

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.

Question 21 Households change their spending by $10 billion due to a decrease in net wealth. The country's marginal propensity to consume is 0.8. What impact will this have on real GDP? Consumption spending will increase by $10 billion Investment spending will decrease by $50 billion Consumption spending will increase by $50 billion Consumption spending will decrease by $50 billion O Consumption spending will decrease by $10 billion O ooo O

Can someone please explain this to me?

If output is above the level of spending balance, then А income will decrease. income will increase. C the marginal propensity to consume will increase. the marginal propensity to consume will decrease.