If the MPC is 0.9 what will happen to GDP if the government cut spending bt S2.

Q: nultiplier the multiplier emains the same. remains the same. lecreases. decreases. ncreases.…

A: A) OPTION C IS CORRECT

Q: If the MPC is 0.7 and investment increases by $4 billion, the equilibrium GDP will Multiple Cholce…

A: Aggregate demand refers is the overall demand for goods and services in an economy. The aggregate…

Q: Given the necessary increase in GDP of $360 and the MPC of 0.70, how much should we reduce taxes to…

A: The multiplier value depends on the marginal propensity consume. The higher the value of MPC ,…

Q: Assume the MPC is 0.8. If government were to impose $20 billion of new taxes on household income,…

A: Given MPC = 0.8 New taxes imposed = $20 billion

Q: The diagram below is a representation of the aggregate expenditure model in a hypothetical economy.…

A: It is given that the initial GDP is 112 millions from the diagram. The given change in aggregate…

Q: What happens to GDP if the investment icreases by 100 with MPC = 0,8 and tax 20%?

A: Given: Investment level increases by = 100 MPC = 0.8 Tax = 20% To Find: The GDP level:

Q: Suppose the MPC is 0.8. The government wants to decrease Total Spending by $600. How should it…

A: MPC=0.8 Total Spending=$600 Multilplier= Change in Y/Change in G=1/1-MPC 600/Change in G=1/1-MPC

Q: On a seperate sheet of paper, using AE model, graph the baseline economy and the scenario with the…

A: The aggregate expenditures model shows the relationship between aggregate expenditure and real GDP.…

Q: U 1 2 point Suppose a country's MPC is 0.75. If the government increases taxes, causing disposable…

A: Marginal propensity to consume shows how consumption changes as income changes.

Q: Suppose the MPC is .80, the MPI is .10, and the income tax rate is 10 percent. What is the…

A: Given that, MPC = 0.80, MPI = 0.10 and income tax rate is 10 percent.

Q: If someone passes 1 trillion  Infrastructure Bill,Graphical show the projected effect of this policy…

A: IS-MP model: It refers to a model under which the interest rate and output will be determined in the…

Q: Assume potential GDP is 3,500 and actual GDP is 3,050. If the consumption function is C=400+0.2Yd ,…

A: The aggregated, economy consumption function is mathematically represented as:  C = a + b (Y - T) .…

Q: Given the following consumption fiction, C= 100 + 0.6YD calculate by how much induced consumption…

A: We are going to find the change in consumption spending to answer this question.

Q: Suppose an economy has an MPC = 0.875. 1. If government spending increase by $100, how much…

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

Q: If the MPC is 0.9 what will happen to GDP if the government cut spending bt $2.

A: ∆Y = 11-c∆G where Y = GDP            c = MPC            G = government spending

Q: If the MPC is 0.8 and government spending decreases by $50 million, then equilibrium GDP will…

A: The equilibrium GDP:The equilibrium GDP can be calculated as follows:

Q: If MPC is = 0.6 and government spending decreases by dollar 100 billion, what happens to equilibrium…

A: Marginal proepensity to consume = 0.6 Decrease in spending = $100 billion

Q: a. What will the multiplier be given the MPS values below? Fill in the table with your answers. MPS…

A: * SOLUTION :-

Q: If the consumption function is C = 100 + 0.75YD,I = 200, government spending is 200, and net…

A: Aggregate Expenditure = Consumption + Invesment + Government spending + Net export

Q: The Marginal Propensity to Consume is how much you spend for every dollar your income increases. How…

A: Here, given information is: Marginal propensity to consume (MPC): 0.8 Increase in income: $10,000…

Q: What will be the multiplier if MPS is 0.633 please response fast

A: A multiplier is a term used in economics to describe an economic element that generates increases or…

Q: Suppose the MPC in an economy is 0.95. What should the government do with taxes if they want to…

A: The magnitude of change in income due to change in autonomous spending is known as multiplier. The…

Q: Assume the MPC is 0.80. If government were to impose $200 billion of new taxes on household income,…

A: MPC refers marginal propensity to consume means rise in income of the consumer spend on consumption…

Q: Given:  C = 100 + 0.75Yd;  I = 120 - 0.1Y – 200i; G= 40; T = 40  What is the autonomous spending…

A: The multiplier reflects how the change in expenditure would affect total expenditure and the…

Q: If the spending multiplier is 10, a S100 increase in government spending and Sl00 increase in taxes,…

A: GDP is the value of final goods and services produced in the economy within a given period of time

Q: ppose that the level of GDP increased by $400 billion in a private closed economy where the marginal…

A: Aggregate expenditure is characterized as the ongoing value of the multitude of completed goods and…

Q: Assume an MPC of 0.9. The change in total spending for the economy as a result of a $100 billion new…

A: Income is divided between consumption and saving. If MPC is 0.9. This means people of the economy…

Q: The country is experiencing a serious rise in inflation which the government wants to control…

A: Gross domestic product is the market value of all goods and services produced in the economy in a…

Q: Calculate MPS and it's given that MPC is 0.88

A: # Marginal propensity to save plus marginal propensity to consume always be equal to 1

Q: If taxes ane decreased by $200 billion, given an MPC of .6, calculate the change in GDP. Give your…

A: The method of state receiving funds from its residents to compensate for basic utilities is known as…

Q: C = 160 + 0.7YD, T= 100, I= 150, G= 150, NX = 100 – 0.1Y. a. What is disposable income (YD)? b. What…

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

Q: Exactly how are the MPC and MPS computed? Explain it by a numerical example.

A: The Marginal Propensity to Consume(MPC) implies the change in consumption due to the change in the…

Q: You are given the following information about a closed economy with no government:Consumption = 115…

A: The components of an economy's aggregate expenditure or spending that are unaffected by the real…

Q: Calculate MPS when MPC is 0.41

A: # We know that the sum of MPS and MPC is 1 so we have:- MPS + MPC = 1

Q: Calculate the value of Marginal propensity to save when it's given that MPC = 0.65

A:

Q: Consumption expenditure C = 100 + 0.8YD Тахes T=-150 +0.25Y Autonomous Investment I* = 60 Government…

A: Market Equilibrium level is  situation where AD = AS  where :-  AD = C+I+G  AS= C+S = Y  AD = AS…

Q: If mpc is 0.5 what the mps and why?

A: Part of income divided into two parts , where one part is consumption and other is saving , if the…

Q: if the economys real gdp is 400 billion less than full empyment. how much is needed to close the gap…

A: The Gross Domestic Product is the summation of money value of all the final goods and services…

Q: The marginal propensity to consume (MPC) is 0.75. The multiplier is (Round your answer to ane…

A: Gross domestic product (GDP) is the total market value of all final commodities manufactured in an…

Q: A fall in mps raises the GDP multiplier. O True O False

A: In an economy, marginal propensity to save refers to the economic measure to compute the change in…

Q: If the MPC is 0.8 and the investment in a country increases by $900 billion calculate the total…

A:

Q: The MPC is 0.5. what happens to the real GDP if the government increases spending by $10 million?

A: Given MPC = 0.5 Increase in government spending = $10

Q: What is multiplier if MPS is 0.9?

A: Multiplier(K)= 1/1-MPC=1/MPS

Q: Suppose that the MPC is 0.6 and that $20 trillion of real GDP is currently being demanded. The…

A: Given: MPC=0.6 Real GDP currently demanded=$20 trillion Real GDP goal=$16 trillion

Q: 4.f MPC was 90% in 2008, how much is MPS (Marginal Propensity to Savej?

A: is income is divided into two parts , MPC and MPS  , the combination of MPC and MPS is equal to 1…

Q: Given an economy is currently producing at $1.2T rGDP, natural rGDP is $1.3T, and the MPC is 0.9,…

A: The output produced by the country is less than the potential output so there is a contractionary…

Q: If government spending rises by £500 million in an economy where the marginal propensity to spend is…

A: Marginal Propensity to spend or consume (MPC) represent that proportion of increase in income that…