Given C = $50 billion + 0.75Yd, the value of the MPC is ?
Starting with the equation: C = $50 billion + 0.75Yd, what happens to the graph of the consumption function if the equation changes to: C = $30 billion + 0.75Yd?
QUESTION 21 Suppose investment spending initially increases by $50 billion in an economy whose MPC is 2/3. By how much will this ultimately change real GDP? O A $75 billion OB. $50 billion OC $ 150 billion D. $ 200 billion QUESTION 22 Which of the following statements is FALSE? O A When income increases MPS is constant When income increases APS Increases C. When income increases MPC is increases D. When income increases APC decreases QUESTION 23 If the...
Investment Problem: 1. Assume the MPC is 3/4, if investment spending increase by $50 billion, the level of GDP will: 2. Assume the MPC is 2/3, if investment spending decreases by $30 billion, the level of GDP will: Export Problem: 3. If the multiplier in an economy is 4, a $50 billion increase in exports will: 4. If the multiplier in an economy is 3,a $30 billion decrease in exports will: Balanced Budget Problem: 5. If the MPC is .75...
if c=20 +0.9Y c=consumption y=disposable income=800 billion what is the multiplier? also calculate MPS MPC APS APC and what is the value of saving for the nation? Question 2 If C = 20 + 0.99 C= Consumption Y = disposable income = $800 billion What is the Multipler? Ob.0.1
7 . Study Questions and Problems #5 Suppose the value of the MPC in an economy is 0.5 The value of the MPS in this economy is and the value of the spending multiplier in this economy is Now, suppose the value of the MPC in an economy is 0.8 The value of the MPS in this economy is , and the value of the spending multiplier in this economy is If the value of the MPC increases, the spending...
21. If an economy in recession with a GDP gap of $10 billion has an MPC of 0.8, what is the amount of the recessionary gap? a. $10 billion b. $8 billion c. $5 billion (d. $2 billion
What is the heat on GDP a $100 billion charge in planned investment the MPC is 0.75? _______ billion.
When the MPC is .75, a decrease in net taxes of $100 billion will increase the equilibrium level of real GDP by a. $75 billion b. $100 billion c. $300 billion d. $400 billion Please explain and provide a formula for questions like this if applicable.
In the Keynesian-cross model, if the MPC equals 0.75 then a $2 billion increase in government spending increases the equilibrium level of income by __________. A) $1 billion. B) $3 billion. C) $4 billion. D) $2 billion.
Say the MPC is .6 and suppose taxes are cut by $300 billion and government spending is increased by $200 billion. Use the multipliers to figure the effect of that change in fiscal policy on spending. The increase due to the tax cut =______. The increase due to the increase in government spending =_______. The total increase=_________. (Government spending multiplier = 1/(1-mpc) Tax multiplier = mpc/(1-mpc))