Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 8P
To determine
To explain:
Whether doubling an individual's income will double the consumption spending, if the marginal propensity to comsume is 0.5.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Calculate the value of MPS when MPC is 0.92
How to calculate mpc?
If the MPC IS 0.9 What should the government do to increase GDP by $4500?
Knowledge Booster
Similar questions
- If the value of MPC is 0.8, find the value of multiplier.arrow_forwardInvestment increases by $200 million and the value of MPC is 0.75. What would be the total increase in spending?arrow_forwardHow much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC is 0.75?arrow_forward
- Given the necessary increase in GDP of $360 and the MPC of 0.70, how much should we reduce taxes to get GDP to its natural rate?arrow_forwardIf the MPC is .75, the government spending multiplier isarrow_forwardFind the value of change in income if change in consumption is $600 and MPC is 0.67arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, IncEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning