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If the marginal propensity to consume increases, we should expect that
for any given change in income, the change in autonomous spending is larger
the IS curve will become steeper
the aggregate expenditure function will flatten
the expenditure multiplier will become larger
the marginal propensity to save will also increase
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- If the Marginal Propensity to Consume (MPC) is 0.6, then the expenditure multiplier must be: Group of answer choices 2.5 3.0 3.5 2.0The value of marginal propensity to consume(MPC) is 0.61 Calculate the value of multiplierIn an economy investment expenditure increased by 20 billion and the marginal propensity to consume is 0.1 calculate the increase in income
- What is the relationship between the marginal propensity to consume (mpc) and the multiplier?As the marginal propensity to consume (MPC) increases, As the marginal propensity to save (MPS) increases, the multiplier the multiplier remains the same. increases. decreases. decreases. increases. remains the same. If the marginal propensity to consume is 0.30, what is the multiplier, assuming there are no taxes or imports? Round to the tenths place.As the marginal propensity to consume (MPC) increases, As the marginal propensity to save (MPS) increases, the multiplier the multiplier remains the same. remains the same. decreases. decreases. increases. increases. If the marginal propensity to consume is 0.40, what is the multiplier, assuming there are no taxes or imports? Round to the tenths place. Given the multiplier that you calculated, by how much will gross domestic product (GDP) increase when there is a $1,000 increase in government spending? Give your answer to the nearest whole number. %24
- The marginal propensity to consume is a)the average amount of income that is consumed or spent b)the ratio of consumption to income c)the ratio of the change in consumption to a change in income d)the ratio of income to consumptionIf the marginal propensity to consume of an economy is 0.7, then the simple spending multiplier is:Find the value of multiplier when MPC is equals to 0.70
- At equilibrium expenditure, unplanned change in inventories must be positive* True False The multiplier effect exists because a change in autonomous expenditure leads to changes in income, which generate further spending True False Autonomous consumption is independent of income and must equal to zero True OFalseWhich 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.If the marginal propensity to save is 0.25, a. The marginal propensity to consume (MPC) is b. The multiplier is