Homework Answers
We know that MPC and MPS are tied in an equation MPS + MPC = 1.
Hence if MPC is 90%, then MPS is 1 - MPC or 1 - 90%.
This gives MPS = 1 - 0.90 = 0.10
Thus, MPS is 0.10 or 10%.
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41f MPC was 90% in 2008, how much is MPS (Marginal Propensity to Save)?
Calculate the values of marginal propensity to save (MPS) and marginal propensity to consume (MPC) when Y=40.
a) If the saving function is given by S° = 0.03Y^2 - 2Y + 150Calculate the values of marginal propensity to save (MPS) and marginal propensity to consume (MPC) when Y=40.
Marginal Propensity to Marginal Propensity to Consume (MPC) Save (MPS) Multiplier (m) 0.92 10 0.85 0.20 23). a). In th...
Marginal Propensity to Marginal Propensity to Consume (MPC) Save (MPS) Multiplier (m) 0.92 10 0.85 0.20 23). a). In the above table, what is the value of the marginal propensity to consume MPC) that correctly fills in blank (G) and the value of the income multiplier that correctly fills in blank (H)? Page 9 b)When the MPC increases, the income/spending multiplier (increases or decreas es). If MPC decreases? 17)Draw an AD and SRAS graph and label the axis, lines and...
If the marginal propensity to consume (MPC) increases... A. The MPS increases B. The multiplier decreases...
If the marginal propensity to consume (MPC) increases... A. The MPS increases B. The multiplier decreases C. MPC +MPS is less than 1 D. THe multiplier increases
ue or false. MPC+ MPS 1 o True O False Correct. Marginal propensity to consume plus...
ue or false. MPC+ MPS 1 o True O False Correct. Marginal propensity to consume plus marginal propensity to save equals 1. of aggregate expenditure is 5 MPcio 8 when the MPC is.8 and there is an increase in investment spending of $100,000. x Incorrect. First determine the expenditure multiplier, then multiply that by $100,000 to obtain the correct answer True or false. If people save more of their income, the expenditure multiplier will not decrease and aggregate expenditures will...
If the marginal propensity to consume (MPC) in your classmate's nation is 3/5 and the marginal...
If the marginal propensity to consume (MPC) in your classmate's nation is 3/5 and the marginal propensity to save (MPS) in your country is 1/10, which of the following must be true? a. Autonomous consumption is lower in your classmate's nation than in your country. b. Autonomous consumption is higher in your classmate's nation than in your country. c. The spending multiplier is smaller in your classmate's nation than in your country. d. Total consumption is lower in your classmate's...
by how much would the 90 billion 2008 tax rebates have shifted AD if the MPC...
by how much would the 90 billion 2008 tax rebates have shifted AD if the MPC was 0.95?
15. According to the Keynesian-cross analysis, if MPC stands for marginal propensity to consume, then a...
15. According to the Keynesian-cross analysis, if MPC stands for marginal propensity to consume, then a rise in taxes of ΔT will: A) decrease equilibrium income by ΔT. B) decrease equilibrium income by ΔT/(1 – MPC). C) decrease equilibrium income by (ΔT)(MPC)/(1 – MPC). D) not affect equilibrium income at all. 16. Assume that a country’s MPS is equal to 0.4 and government expenditure is lowered by $20 billion, what is the effect on the country’s Y? A) It will...
If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase...
If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase real GDP by $400 million, then by how much would government spending have to change to generate this increase in real GDP? Group of answer choices a. $200 million. b. $400 million. c. $140 million. d. $100 million.
1. Define/explain the concept of ‘Marginal Propensity to Consume’ (MPC). 2. List and briefly explain at...
1. Define/explain the concept of ‘Marginal Propensity to Consume’ (MPC). 2. List and briefly explain at least 3 of the primary ‘determinants’ of MPC (One of these ‘determinants’ should be the topic of ‘expectations of future economic conditions’). 3. Discuss how does ‘Fear, Uncertainty, and Doubt’ (FUD) lead to adverse ‘shocks’ to the economy. 4. And finally, discuss how adverse changes in overall ‘consumer expectations’ and ‘uncertainty’ resulting from the ‘financial crisis of 2007-2008’ affected subsequent Personal Consumption (C) and...
The multiplier is equal to Multiple Choice Ο 1- Marginal propensity to save Ο Marginal propensity...
The multiplier is equal to Multiple Choice Ο 1- Marginal propensity to save Ο Marginal propensity to save + Marginal propenstyto consume Ο C) 1. Marginal propensity to save. Ο C) 1 - Marginal propensity to consume.
Marginal Propensity to Marginal Propensity to Consume (MPC) Save (MPS) Multiplier (m) 0.92 10 0.85 0.20 23). a). In the above table, what is the value of the marginal propensity to consume MPC) that correctly fills in blank (G) and the value of the income multiplier that correctly fills in blank (H)? Page 9 b)When the MPC increases, the income/spending multiplier (increases or decreas es). If MPC decreases? 17)Draw an AD and SRAS graph and label the axis, lines and...
ue or false. MPC+ MPS 1 o True O False Correct. Marginal propensity to consume plus marginal propensity to save equals 1. of aggregate expenditure is 5 MPcio 8 when the MPC is.8 and there is an increase in investment spending of $100,000. x Incorrect. First determine the expenditure multiplier, then multiply that by $100,000 to obtain the correct answer True or false. If people save more of their income, the expenditure multiplier will not decrease and aggregate expenditures will...
The multiplier is equal to Multiple Choice Ο 1- Marginal propensity to save Ο Marginal propensity to save + Marginal propenstyto consume Ο C) 1. Marginal propensity to save. Ο C) 1 - Marginal propensity to consume.
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