Ripple effects occur throughout the economy when determine the effects of this increase, the , which tells us the total impact on increases. To is used to calculate the investment government spending consumer spending marginal propensity to consume (MPC) spending multiplier marginal propensity to save (MPS) + +

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Mc Graw Hill The table below shows some of the expenditure amounts in the economy of Arkinia. The MPC, the MTR, and the MPM are all constant, as are the values of the three injections. a. Complete the table below. Y 0 100 200 300 400 500 608 700 808 T 800 20 40 60 80 100 120 140 160 180 YD 60 -20 140 220 300 380 460 540 620 C 130 195 325 260 이 455 65 390 520 The Economy of Arkinia S +5 10 40 -20 100 25 55 70 85 Tools I 50 50 50 50 50 50 50 50 50 O Search G 180 180 180 180 180 180 180 180 180 < Prev kriste 10 of 10 X 50 50 50 50 58 50 50 50 50 i SAMSUNG IM 40 50 60 Next 10 20 30 70 80 90 200m Draw a 45° line (labelled Y) and the aggregate expenditure function, labelled AE₁. Identify expenditure equilibrium with the letter e Use the tool "e1" to show the expenditure equilibrium. Plot only the endpoints of Y and AE. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as…

The value of consumption is $1000 and income is $2200  Calculate the value of average propensity to consume

In an economy investment multipier increase by 120 billion. The value of multiplier is 4. Calculate MPC.

Real Disp. Consmp. Income Spending Saving Invst Plnd Plnd Govt Net Plnd Exp. Export Exp. 10.8 GDP Tax 10 6.8 1.2 1.5 2 0.5 11 7.6 1.4 1.5 0.5 11.6 12 10 8.4 1.6 1.5 2 0.5 12.4 13 2 11 9.2 1.8 1.5 2 0.5 13.2 14 12 10.0 2.0 1.5 0.5 14.0 15 13 10.8 2.2 1.5 0.5 148 16 14 11.6 2.4 1.5 2 0.5 15.6 Note: Amounts in billions. Refer to the above table. The equilibrium real GDP is $15 billion. $14 billion. $13 billion. $12 billion.

Multiplier Effect Question, Initial investment of 2 billion and getting 9 billion in total revenue after reinvestment

QUESTION 21 What is the marginal propensity to consume? a. The ratio of the change in consumption to the change in national income O b. The proportion of national income that goes on consumption O c. The additional spending by a consumer when the price of a good falls O d. The additional revenue received by a firm when it attracts a new customer

Given the scatter diagram in Figure 8-1, what is the MPC (your best estimate)?   a.  1     b.  2/3     c.  1/2     d.  1/3   I know the answer  of this question  answer is 2/3 but can you please give the explanation how 2/3 is the answer of the problem

Corn (lb)                  Scarves(#)U.S.                                        20                             10Mexico                                    25                               5 If the multiplier is 4 and a change in government spending leads to a cumulative $500 million decrease in aggregate spending, then initially: a. Government spending decreased by $125 million. b. Government spending decreased by $500 million. c. Taxes decreased by $100 million. d. Government spending decreased by $100 million.