If the consumption function is given by C=20+3/4 Y then the value of multiplier will be???

Q: If consumers decided to save a higher percentage of their disposable income, the value of the…

A: The spending multiplier, or monetary multiplier, is a financial proportion of the impact that an…

Q: 140 120 100 80 60 40 20 0. 40 60 80 100 12 -20 -40 income: Q 01. Given this diagram of Consumption…

A: Answer: Marginal propensity to consume: it refers to the ratio of change in consumption and change…

Q: Construct the multiplier model using the consumption function C = 100 + 0.80Y and an investment…

A: The measure that depicts the final value of goods and services being produced in an economy during a…

Q: Suppose the MPC is .6 and consumption increases by $8 billion. Consequently, total income through…

A: Given information, Change in consumption: $8 billion (increase) MPC: 0.6 Find: change in total…

Q: Suppose that when disposable income decreases by $2,000, consumption spending increases by $1500.…

A: Marginal propensity to consume is defined as the change in consumption divided by change in income.

Q: Find Multiplier if the value of MPC is 0.65

A: The data presented in the question above is:- Marginal propensity to consume = 0.65  Multiplier is…

Q: Find out the value of the multiplier if the MPC is zero?

A: Generally in the given question, MPC is = zero MULTIPLIER = ?

Q: an increase in MPC, reduces the multiplier? true or fulse

A: The marginal propensity to consume is the concept which explains the increase in the consumption…

Q: Find the value of multiplier when MPC is equals to 0.70

A:

Q: Find the value of the multiplier when the MPS equals to 0.70

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

Q: Find the value of MPC when multiplier is stated as 0.97

A: MPC or the marginal propensity to consume is the percentage of consumer's income that the consumer…

Q: The Finance Minister in Canada asked a policy analyst the following question "what value can the…

A: Multiplier refers to the economic factor that when changed cause change in the many other related…

Q: If the marginal propensity to consume (MPC) is .75 for a closed economy, what is the multiplier…

A: Marginal propensity to consume refers to the change in consumption with respect to change in income.

Q: If the value of investment multiplier is 1 what will be the value of MPC

A: The information being provided is:- Investment multiplier = 1 MPC = ? We have to find the value of…

Q: What is the relationship between the marginal propensity to consume (mpc) and the multiplier?

A: Multiplier refers to the situation where the number of times the level of income increases due to…

Q: Consider economy T described by the parameters below: C=1500+0.6Y I = 1200 G=2500 X =500 M =…

A: Here, information about the components of aggregate demand is given.

Q: When price level is considered, the value of the multiplier will be less than that suggested by the…

A: The over simplified formula of the multiplier is, Multiplier = 1 / (1-MPC) , where MPC is the…

Q: If the value of MPC is 0.8, find the value of multiplier.

A: Multiplier refers to a proportionality factor that ascertains the level of change that an…

Q: The following information is a three sector economy of a   Consumption function (C) = 310 + 0.6Yd…

A: The expenditure approach calculates GDP as total spending on the physical volume of final goods and…

Q: Calculate the value of MPC if the multiplier is given to be as 1.4

A: The value of multiplier is given as:- MULTIPLIER = 1 / Marginal propensity to save Also we know…

Q: Consider a hypothetical closed economy in which households spend $0.75 of each additional dollar…

A: Here MPC = 0.75 And MPS = 0.25 Multiplier = 1 / MPS = 4 Now, Increase in government spending = 250…

Q: Find MPC from the given consumption function Y=2+0.2Y

A: The given consumption function is:  C=2+0.2Y

Q: If the MPC is 0.75, then the multiplier is 4. Select one: True False

A: Given MPC = 0.75 Multiplier = 4

Q: If the ratio of MPS and MPC is 1:4 then find the value of multiplier.

A: The economics as a study is based upon the idea that the resources which the economies have with…

Q: If the ratio of MPS and MPC is 1:4 then find the value of multiplier.

A: The concept of an investment multiplier states that every increase in public or private investment…

Q: ind the value of multiplier when the value of MPS is 0.891

A: Initially in the question, We have to find the value of multiplier = ? MPS = 0.891

Q: Suppose Terese gets a sales bonus at her place of work that gives her an extra $600 of disposable…

A: Marginal propensity to consume refers to the change in the consumption expenditure that arises when…

Q: If the marginal propensity to consume (MPC) increases. A. The MPS increases B. The multiplier…

A: here we can find the correct answers as follow-

Q: What is the minimum value of multiplier?

A: The multiplier is given by the formula:- k = 1 / ( 1 - MPC ) Where MPC is the marginal propensity to…

Q: Calculate the value of investment multiplier when MPS is given to be as 0.78

A: # A rise in the aggregate income of the economy if there is any investment taking place is…

Q: If the value of multiplier is 32 find the MPC and MPS.

A:

Q: Complete the following table by completing the multiplier for each MPC listed MPC - 0.17 MPC -…

A:

Q: If the ratio of MPC and MPS is 4:1 then the value of investment multiplier would be 4 True / False

A: # We know that the sum of MPC and MPS is always 1 That is:- MPS + MPC = 1

Q: Prove that the multiplier is equal to 1/(1-mpc)

A: We know Y = C + I and C = a + bY where  Y is income C is consumption  I is investment  a is…

Q: Calculate the value of MPS when the value of investment multiplier is given as 2.3

A: # The formula for investment multiplier is given as:- = 1/MPS  Thus it is the inverse of the…

Q: If the value of MPS and MPC is same. What will be the value of multiplier

A: The information being given to us is as follows:- The value of Marginal propensity to save and…

Q: Find the value of multiplier if MPS is 0

A: The information give to us is:- Marginal propensity to save = 0 Multiplier (k) = ? We have to…

Q: Q1. Calculate the value of multiplier  when mpc is 0.5.

A: Below is the value of marginal propensity to consume: MPC = 0.5 The formula for the Multiplier: K =…

Q: Assuming there is no government or foreign sector, if the multiplier is 5, the MPC is Select one: a.…

A: Given:  There is no government sector and no foreign sector. Value of multiplier = 5 To Find : MPC

Q: If MPC = 0.28 how much will be the additional investment required to increase income by 1300 also…

A: Given: MPC=0.28 Increase in income=1300 To find: Additional investment Multiplier

Q: If we observe that every increase in income of $120 million generates an increase in consumption of…

A: Given: The increase in income is = $120 million The increase in consumption = $80 million To Find:…

Q: Consumption function is given as below. If Y= 91, what is the marginal propensity to consume (mpc)?…

A: The consumption function is the economic formula that is used to represent the functional…

Q: State whether it is true or not  When the marginal propensity to consume is 0 the value of…

A: The marginal propensity to consume (MPC) is the percentage of a pay increase that a consumer spends…

Q: Given the consumption function, C = 3 + Vy + 2Vy where y marginal propensity to consume (MPC) at y =…

A: the consumption function describes a relationship between consumption and disposable income. here…

Q: Construct a consumption function from the data given here and determine the MPC. Given the…

A: Year Consumer Spending($) Disposable Income($) 2014 1,200 1,500 2015 1,440 1,800 2016 1,680…