Homework Answers
Ans: c)10
Multiplier = 1/(1-MPC)
where, MPC = Marginal propensity to consume = coefficient of Y in consumption function = 0.9
Therefore, multiplier = 1/(1-0.9)
= 1/0.1
= 10
Add Answer to:
if c=20 +0.9Y c=consumption y=disposable income=800 billion
what is the multiplier?
also calculate MPS MPC APS...
Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and...
Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respectively. Next, assume that disposable income increases by $80 billion, corisumption rises by $56 blillion, and saving goes up by $24 billion. a. What is the economy's MPC? Instructions: Round your answers to 2 decimal places MPC= What Is its MPS? MPS b. What was the APC before the increase in disposable income? Instructions: Round your answer to 2 decimal places. APC...
Econ 2)1 Given the following figures, calculate savings, MPC, MPS, and Multiplier (20 points) 1. C...
Econ 2)1 Given the following figures, calculate savings, MPC, MPS, and Multiplier (20 points) 1. C S MPC MPS APC APS GDP 325 320
Use the table below to determine the MPC and MPS. Disposable Income Consumption Saving $1000 $1100...
Use the table below to determine the MPC and MPS. Disposable Income Consumption Saving $1000 $1100 -$100 2000 1600 400 3000 2100 900 1. Using the above information, what is the MPC and MPS when the DI is 3000? MPC = MPS = 2. What equation could you use to determine the Multiplier, using MPC and MPS? Multiplier = Multiplier = 3. If there is an initial investment spending of $5,000; what would the total change in GDP...
4. Using the above information. Fill in the remaining two columns. Disposable Income APC APS MPC...
4. Using the above information. Fill in the remaining two columns. Disposable Income APC APS MPC MPS $1000 1.0 0.0 ------------- ------------- 1500 0.93 .07 2000 0.90 0.10 2500 0.88 0.12 5. Based off your findings. What is the Multiplier at a disposable income of $2000? 6. If the initial spending is $10,000; what would be the total change in GDP be?
The consumption function is given by the equation: C = 400 + 0.8(Yd) where C =...
The consumption function is given by the equation: C = 400 + 0.8(Yd) where C = consumption and Yd = disposable income. Currently, the level of disposable income is $5000. What is the current level of consumption? What is the current level of saving? What is the MPC? What is the MPS? Calculate the APC and the APS. 6. We are given the following information about the levels of disposable income and savings: Disposable Income Consumption Savings APC APS MPC...
Keynesian Consumption Function (billions of dollars per year) Real disposable income Consumption Saving MPC MPS $100...
Keynesian Consumption Function (billions of dollars per year) Real disposable income Consumption Saving MPC MPS $100 200 300 400 500 $150 200 250 300 350 a.) Calculate the saving schedule. b. Determine the marginal propensities to consume (MPC) and save (MPS). c. Determine the break-even income. d.) What is the relationship between the MPC and the MPS? 3. Explain why the MPC and the MPS must always add up to one. 4. How do households "dissave" 5. Explain how each...
The MPC is A) the change in consumption divided by the change in income. B) consumption divided by income. C) the c...
The MPC is A) the change in consumption divided by the change in income. B) consumption divided by income. C) the change in consumption divided by the change in saving. D) the change in saving divided by the change in income. The MPS is A) the change in saving divided by the change in income. B) 1 + MPC C) income divided by saving. D) total saving divided by total income Saving equals A) Y-C. B) Y - planned 1....
6. Suppose a family's annual disposable income is $8000 of which it saves $2000. (a) What...
6. Suppose a family's annual disposable income is $8000 of which it saves $2000. (a) What is their APC? (b) If income rises to $10,000 and they plan to save $2800, what are MPS and MPC? (c) Did the family's APC rise or fall with their increase in income? 7. Complete the following table assuming that (a) MPS = 1/5, (b) there is no government and all saving is personal saving. Level of output and income Consumption Saving $250 $260...
Output and APS MPC MPS 3480 $4888 1.0167 -00167 08 02 10 0.8 0.2 0.2 0.2...
Output and APS MPC MPS 3480 $4888 1.0167 -00167 08 02 10 0.8 0.2 0.2 0.2 1.0000 0.8 0.9857 0.01430.8 584 | 16 | 0.9733| 0.0267| 0.8 | 0.2 | 616 24 0.9625 320.0375 0.9444 nook680 0.2 0.2 0.2 760 71248 0.9368 0.0632 08 02 0.2 648320.9529 0.0471 08 40 0.0556 0.8 Print 744 0.9300 0.0700 0.8 Suppose the wealth effect is such that a $10 change in wealth produces a $1 change in consumption at each level of income...
Consider the Keynesian Consumption function C 2000 + 0.8 (Y - T) C is personal consumption...
Consider the Keynesian Consumption function C 2000 + 0.8 (Y - T) C is personal consumption Y is personal income T is income taxes Also suppose Y = 40,000 T = 0.25Y Calculate APC and APS Calculate the Multiplier and interpret its value
Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respectively. Next, assume that disposable income increases by $80 billion, corisumption rises by $56 blillion, and saving goes up by $24 billion. a. What is the economy's MPC? Instructions: Round your answers to 2 decimal places MPC= What Is its MPS? MPS b. What was the APC before the increase in disposable income? Instructions: Round your answer to 2 decimal places. APC...
Econ 2)1 Given the following figures, calculate savings, MPC, MPS, and Multiplier (20 points) 1. C S MPC MPS APC APS GDP 325 320
Keynesian Consumption Function (billions of dollars per year) Real disposable income Consumption Saving MPC MPS $100 200 300 400 500 $150 200 250 300 350 a.) Calculate the saving schedule. b. Determine the marginal propensities to consume (MPC) and save (MPS). c. Determine the break-even income. d.) What is the relationship between the MPC and the MPS? 3. Explain why the MPC and the MPS must always add up to one. 4. How do households "dissave" 5. Explain how each...
The MPC is A) the change in consumption divided by the change in income. B) consumption divided by income. C) the change in consumption divided by the change in saving. D) the change in saving divided by the change in income. The MPS is A) the change in saving divided by the change in income. B) 1 + MPC C) income divided by saving. D) total saving divided by total income Saving equals A) Y-C. B) Y - planned 1....
6. Suppose a family's annual disposable income is $8000 of which it saves $2000. (a) What is their APC? (b) If income rises to $10,000 and they plan to save $2800, what are MPS and MPC? (c) Did the family's APC rise or fall with their increase in income? 7. Complete the following table assuming that (a) MPS = 1/5, (b) there is no government and all saving is personal saving. Level of output and income Consumption Saving $250 $260...
Output and APS MPC MPS 3480 $4888 1.0167 -00167 08 02 10 0.8 0.2 0.2 0.2 1.0000 0.8 0.9857 0.01430.8 584 | 16 | 0.9733| 0.0267| 0.8 | 0.2 | 616 24 0.9625 320.0375 0.9444 nook680 0.2 0.2 0.2 760 71248 0.9368 0.0632 08 02 0.2 648320.9529 0.0471 08 40 0.0556 0.8 Print 744 0.9300 0.0700 0.8 Suppose the wealth effect is such that a $10 change in wealth produces a $1 change in consumption at each level of income...
Most questions answered within 3 hours.
-
Explain why/how human cells are highly resistant to
immortalization and transformation in comparison with mice
cells.
asked 8 minutes ago -
I have to write a 20-page Philosophy paper about a major problem
in the world and...
asked 3 minutes ago -
Suppose you have two tables: Table
Product:
PROD_ID
PROD_NAME
PROD_PRICE
PROD_PROD_DATE
PROD_VENDOR
1101
Table
100
1-Jan-18...
asked 8 minutes ago -
How many grams of ice at -5.7 ∘C can be completely converted to
liquid at 20.0...
asked 9 minutes ago -
Chapter 15 Global Business Today by Charles W.L.Hill
Know the factors that influence whether a firm...
asked 10 minutes ago -
Arrange these halides in decreasing order of reactivity toward
I- in acetone:
n-butyl bromide, sec-butyl bromide,...
asked 29 minutes ago -
Light from a helium-neon laser (λ = 632.8 nm) passes through a
single slit. The angle...
asked 25 minutes ago -
A rod made of cobalt with a mass of 0.80 kg is heated to 850°C,
then...
asked 31 minutes ago -
Suppose the price elasticity of demand for movies is -1.5. If
the price of movies increase...
asked 32 minutes ago -
Two resistors, of 3.2 Ω and 5.8 Ω, are connected in parallel to
the terminals of...
asked 30 minutes ago -
Regardless of the system used in departmental cost analysis:
Multiple Choice
Neither direct nor indirect costs...
asked 35 minutes ago -
The peak voltage of the source from problem 4 is 12 V. You
notice that the...
asked 45 minutes ago