6 If the marginal propensity to consume (MPC) is 0.40, the expenditure multiplier will be equal to _______ . (Enter your answer using ONE decimal place)
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If the marginal propensity to consume (MPC) is 0.40, the expenditure multiplier will be equal to _______ . (Enter your answer using ONE decimal place)
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- please explain this dynamic multiplier graph that givenConsider the following table, which shows a household's disposable income and consumption expenditures. All values are expressed in dollars. Compute the marginal and average propensities to consume for each level of income and fill in the table. (Round your responses to two decimal places) Disposable Income (Y) 0 300 600 900 1,200 1,500 Desired Consumption (C) 420 660 900 1,140 1,300 1,620 MPC-ACIAY NA APC = C/Y₂ NA18. What will be the level of consumption spending at an income level of 36? a) 30 b) 24 c) 28 d) 16 e) 8
- 6. Consider the following economy: C= 100+0.8Y, I = 200, G = 125, NX= 75. (a) Compute the equilibrium GDP (b) If the government decides to increase the spending by $30, how much will be the impact on equilibrium GDP? (Hint: Spending multiplier = 1/1 - MPC)During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this economy is known to be equal to 10.Which of the following might have caused the increase in real GDP? Question 12Answer a. Exports increased by $0.3 billion. b. Investment decreased by $0.3 billion. c. Exports decreased by $0.3 billion. d. Imports increased by $0.3 billion. e. Government expenditure on goods and services increased by $3 billion.What is the expenditure multiplier in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (ı') Purchases (G) (NX) Expenditures (AE) Inventories 10000 8200 800 11000 9000 600 12000 9800 13000 14000 15000 800 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 3 4 C d 10
- Assume that a nation's marginal propensity to consume (MPC) is 0.75. A highiy productive, cost-cutting technology is developed for the production of commercial airplanes. The total industry expenditure in this nation is $100 million for the immediate acquisition and adoption of this technology. (a) For this nation, identify and explain how much this spending on new technology will change each of the following in the first round: i. Income (GDP) L. Saving i. Consumption (b) Assuming a closed economy and no leakages, identify and explain how much this spending on new technology will change each of the following at the end of the final round: i. Income (GDP) ii. Saving li. ConsumptionThe multiplier 15) If the consumption function is C = $800 billion + 0.8Y (a) What is the MPC? (b) How large is autonomous C? (c) How much do consumers spend with incomes of $4 trillion? (d) How much do they save?Use the table below to answer the following questions. Real Consumptio GDP n $300 310 320 330 340 350 360 $290 298 306 314 322 330 338 (a) What is the size of the multiplier in this economy? Now, calculate the multiplier when the MPS is .5, .25, .10. What is the relationship between MPS and the multiplier? (b) If taxes were zero, government purchases were $10, investments $6, and net exports were zero, what is the equilibrium GDP? (c) If taxes are $5, government purchases are $10, investment is $6, and net exports are zero, what is the equilibrium GDP? (d) Assume that investment, net exports, and taxes are zero. Government purchases are $30, and the full-employment GDP without inflation is $330. How much must government spending be reduced to eliminate the inflationary expenditure gap?
- Aggregate Expenditures 800 600 400 200 0 15 04 Income Refer to the above graph to answer this question. What is the value of the multiplier in this economy? 200 400 600 800 1000 167 A AE 02 O Cannot be determined.Example For an economy the following data is given : Consumption (C) Investment (I) 100 + 0.8 Y. %3D 150 75 Government Expenditure (G) Rate of income tax (T) %3D 0.25Y (a) Find the equilibrium level of incomę. (b) What is the value of multiplier with tax and without tax ?If MPC is 0.12 and the change in income is $3300 Calculate change in consumption
