If the ratio of MPC and MPS is 4:1 then the value of investment multiplier would be 4 True / False

Q: If MPC=0.8 what will be the value of investment multiplier (A) 4 (B) 5 (C) 3

A: # the formula for the money multiplier in terms of MPS is given to be as:- k = 1/MPS NOW we know…

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

A:

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: Assuming no government or foreign sector, if the MPC is 0.5, the multiplier is 1 0.2. 2 0.5. 3 4 5.…

A: MPC is the marginal propensity to consume, given as 0.5

Q: True/False # There is an inverse relationship between the value of marginal propensity to save and…

A: # investment multiplier calculates the impact of investment spending whether it be public or private…

Q: Suppose output and income is equal to 23300, the marginal propensity to consume is 0.55, and…

A: Income = Consumption + Saving First, we need to find consumption.

Q: The real life multiplier: a) is the same as the oversimplified multiplier formula suggests. b) is…

A: Multiplier Effect:- In economics, a rise in expenditure leads to a rise in national income and…

Q: The value of multiplier depends on the _____

A: Multiplier refers to the magnitude by which the equilibrium output changes due to a change in…

Q: If mpc = 0.9, the multiplier equals 10. %3D O True O False

A: Given  MPC=0.9 We know that the Keynesian multiplier: k=11-mpc

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: If the marginal propensity to consume (MPC) equals 0.25 and the government increases spending by…

A: the marginal propensity to consume is a metric that quantifies induced consumption, the concept…

Q: In the first economy (with MPC = 0.5), the $20 billion increase in investment causes equilibrium…

A: There are two closed economy countries  1st with 0.5 MPC and $20 billion Increases in Investment2nd…

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: 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: State whether it is true or false Unplanned  inventories accumulate when the planned investment is…

A: According to the given question Planned investment is considered as the total amount of all the…

Q: If marginal propensity to save is 0.1 Find the value of multiplier

A: The information being given to us is as follows:- Marginal propensity to save = 0.1 We need to find…

Q: If the value of MPC is 0.8, find the value of multiplier.

A: Multiplier refers to a proportionality factor that ascertains the level of change that an…

Q: What is the value of MPC if marginal propensity to save is .1.

A: Given the value of marginal propensity to save = 0.1 Now we have to find the value of MPC.

Q: If autonomous planned investment increases by $100, and the MPC = 0.8, in the first round of…

A: Given  Change in autonomous investment ∆I=$100   MPC=0.8

Q: Given a MPC of 0.75, if consumer spending decreases by $300 billion, we would expect RGDP to…

A: MPC=0.75 Decrease in consumer spending=$300

Q: C= 500 + 0,8Y, tax rate(t)= 0,25, G=1000 ve I= 1200. X= 500, M= 500 + 0,1Y. Calculate the…

A: In an economy, the investment multiplier explains the change in the income level due to changes in…

Q: You are given the following information about a closed economy with no government: Consumption =…

A: Meaning of Money Supply: In general term, we usually use money supply to mean money circulation,…

Q: Calculate the value of MPS when the value of MPC is given to be as 0.25

A: We know that the sum of marginal propensity to consume and the marginal propensity to save is always…

Q: If the MPC = 3/5, then the government purchases multiplier is 5/3 5/2 5 1.5

A: Marginal propensity to consume is the proportion of the additional income used for the consumption…

Q: Assume that Sweden has a closed economy where consumption function is " C = 400 + 0.6 Yd ", net tax…

A: t: Tax rate = 0.3 MPC: Coefficient of Yd = 0.6 Thus, Multiplier = 1 / [1 - MPC x (1 - t)]

Q: At equilibrium level, the Ex ante savings and Ex ante investment are equal True/False

A: The planned investment and planned savings are known as ex ante investment and ex ante savings…

Q: Calculate multiplier if MPC is 0.75

A: Spending multiplier: - it is a fraction that shows the magnitude of the change in national income…

Q: If the value of marginal propensity to save is 0.8 what will be the value of investment multiplier?

A: Investment multiplier: - it is a factor that shows the effect of the increase in investment on the…

Q: 1. The Marginal Propensity to Consume (MPC) equals: A. 0.70 B. 0.75 C. 0.80 D. 0.85

A: MPC stands marginal propensity to consume which define as the proportion of an aggregate raise in…

Q: If the marginal propensity to consume (MPC) increases. A. The MPS increases B. The multiplier…

A: here we can find the correct answers as follow-

Q: Calculate the value of investment multiplier when MPS is given to be as 0.78

A: # A rise in the aggregate income of the economy if there is any investment taking place is…

Q: With an MPC of 90, what would you expect to be the total impact on spending/incomes from the…

A: Here we calculate the impact of spending from construction by calculating the multiplier by using…

Q: Answer the following questions and provide the necessary solutions. 1. Compute the multiplier if a)…

A: Multiplier represent how many time money multiplied in economy it depends upon the MPC , because MPC…

Q: Assuming there is no government or foreign sector, if the multiplier is 5, the MPC is 1 0.4. 2 0.5.…

A: Answer: Correct option: option (3) 0.8 Explanation: MPC is 0.8

Q: Prove that the multiplier is equal to 1/(1-mpc)

A: We know Y = C + I and C = a + bY where  Y is income C is consumption  I is investment  a is…

Q: Given that C = 1000 + 0.8 Y and = $200 %3D Use the injection and leakage approach to find out the…

A: Answer: Given, Consumption function:C=1000+0.8YInvestment=$200 (a). At equilibrium, Saving (leakage)…

Q: Find the value of multiplier if MPS is 0

A: The information give to us is:- Marginal propensity to save = 0 Multiplier (k) = ? We have to…

Q: Assuming there is no government or foreign sector, if the multiplier is 5, the MPC is Select one: a.…

A: Given:  There is no government sector and no foreign sector. Value of multiplier = 5 To Find : MPC

Q: What is the value of the MPC? b. WhatisthevalueoftheMPS? c. What is the value of the multiplier

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: If MPC is zero, the level of value of investment multiplier in a two sector economy will be a. Zero…

A: In economics, investment refers to the purchase of goods and services that are not consumed at the…

Q: If the multiplier is 10,

A: For finding multiplier we use the formula Multiplier=(1/1-mpc)

Q: Consumption function is given as below. If Y= 91, what is the marginal propensity to consume (mpc)?…

A: The consumption function is the economic formula that is used to represent the functional…

Q: The value of marginal propensity to consume(MPC) is 0.61 Calculate the value of multiplier

A: Before preceding to the explanation and numerical part for our problem, let's first understand what…

Q: If the consumption function is given by C=20+3/4 Y then the value of multiplier will be???

A: According to the given question In simple words we can say that the consumption function is an…

Q: Find the value of MPC if MPS is 0.4.

A: Given: Marginal propensity to save = 0.4