Suppose output and income is equal to 14000, the marginal propensity to consume is 0.75, and...

Suppose output and income is equal to 14000, the marginal propensity to consume is 0.75, and autonomous consumption is 300. Calculate total saving for this economy, assuming no public or foreign sector. (Round your answer to the nearest whole number.)

Suppose the marginal propensity to consume in an economy is 0.9. What would be the Keynesian multiplier in this economy? (Express your answer as a whole number – no fractions or decimals)

Expert Solution

Rahul Sunny answered 2 years ago

Suppose output and income is equal to 24200, the marginal propensity to consume is 0.80, and...

Suppose output and income is equal to 24200, the marginal propensity to consume is 0.80, and autonomous consumption is 200. Calculate total saving for this economy, assuming no public or foreign sector. (Round your answer to the nearest whole number.) Your Answer:

Consider a nation with a marginal propensity to consume of 0.75. a. What will its marginal...

Consider a nation with a marginal propensity to consume of 0.75. a. What will its marginal propensity to save be? b. What would happen to its consumption (give the direction and size of the effect) if taxes (T) were to increase by 100, assuming th at real aggregate income is unaffected? What would happen to private saving? To public saving? To national saving? c. Suppose, instead, that government purchases (G) increase by 100 while taxes remain unchanged. Assuming that aggregate...

If the marginal propensity to consume is 0.75, how much is the spending multiplier? If the...

If the marginal propensity to consume is 0.75, how much is the spending multiplier? If the marginal propensity to consume drops to 0.5, how much is the new spending multiplier?

10. If the marginal propensity to consume is 0.75 and investment spending decreases by $20 billion....

10. If the marginal propensity to consume is 0.75 and investment spending decreases by $20 billion. Suppose all other aggregate expenditure components are autonomous, based on the Keynesian model, what will be the overall effect on GDP? Select one: a. GDP will decrease by $20 billion b. GDP will increase by $15 billion c. GDP will decrease by $80 billion d. GDP will increase by $30 billion e. GDP will decrease by $26.7 billion 11. One of the most serious...

Calculate the government purchases multiplier if the marginal propensity to consume equals 0.75, the tax rate...

Calculate the government purchases multiplier if the marginal propensity to consume equals 0.75, the tax rate is 0.2, and the marginal propensity to import equals 0.3. Select one: a. 1.43 b. 1.6 c. 3.33 d. 4

1. If the marginal propensity to consume is 0.6, the marginal propensity to save is 0.4,...

1. If the marginal propensity to consume is 0.6, the marginal propensity to save is 0.4, and government spending increases by $2 billion at the same time taxes rise by $2 billion, equilibrium income will: rise by $2 billion. is the answer, I just dont know what steps to undertake to get the answer nor know what equation to use. 2. In the nation of Economia, the economy is over heating and there is danger of inflation. The chief economist...

If the marginal propensity to consume is 0.9, the tax rate 0.35, and the propensity to...

If the marginal propensity to consume is 0.9, the tax rate 0.35, and the propensity to import 0.2, then the value of the multiplier is (to 3 decimal places):

The Potter family has a marginal propensity to consume (MPC) of 0.70. If their disposable income...

The Potter family has a marginal propensity to consume (MPC) of 0.70. If their disposable income increases by $500, what happens to their consumption and saving? Select one: a. Consumption rises by $700, and saving falls by $200. b. Consumption rises by $350, and saving falls by $150. c. Consumption rises by $350, and saving rises by $150. d. Consumption rises by $700, and saving rises by $300. e. It depends on their marginal tax rate. If Canadians expect future...

If the Government cut income taxes by 100 billion and the marginal propensity to consume (MPC) is...

If the Government cut income taxes by 100 billion and the marginal propensity to consume (MPC) is equal to .75? How would this tax cut impact the National Budget and the National Debt? What are the pros and cons of running a deficit? Would you support such a tax cut and for whom should we impose the tax cut?

1. What is the multiplier if the marginal propensity to consume (MPC) is 0.5? Calculate the marginal propensity to save (MPS)?

1. What is the multiplier if the marginal propensity to consume (MPC) is 0.5? Calculate the marginal propensity to save (MPS)?2. What is the multiplier if the MPS is 0.2? Calculate the MPC.3. As a percentage of GDP, savings accounts for a larger share of the economy in the country of Scania compared to the country of Amerigo. Which country is likely to have the larger multiplier? Explain.4. Assuming that the aggregate price level is constant, the interest rate is...

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