If the marginal propensity to save is 0.20, (a) What is the MPC? (b) How large is

Question:

If the marginal propensity to save is 0.20,

(a) What is the MPC?

(b) How large is the multiplier?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Essentials of Economics

ISBN: 978-1259235702

10th edition

Authors: Bradley Schiller, Karen Gebhardt

See More Books

Question Posted: Aug 30, 2017 11:54 PM

See More Questions

1. In our simple model, if C = 100 + 0.8y, and I = 50, equilibrium output will be ______. 2. If in Exercise 3.1 I increase to 100, a. The equilibrium income will be ______. b. The multiplier is...
The expiration of the FICA payroll tax cut of January 1, 2013 raised taxes by $110 billion per year. If the marginal propensity to save was 0.20, (a) By how much did consumer spending decrease...
Calculate the marginal propensity to consume, the marginal propensity to save, and the level of saving for each income level in the accompanying table. MPC MPS SAVING 100 200 300 400 500 0 S0 100 150...
(a) Victor and Maria regularly buy and sell a number of items on eBay, Craig's List, and through the free community newspaper, from which they earn about $4,000 each year. What is the accumulated...
Consider a real-valued sequence x[n] for which X(e j ) = 0, /3 || . One value of x[n] may have been corrupted, and we would like to approximately or exactly recover it. With x[n] denoting the...
Present and Future Value Computations Required: 1. Compute the present value for each of the following situations, assuming an interest rate of 12% compounded annually. (Round amounts to the nearest...
What is Project Integration Management? AppendixLO1
Two charges are placed as shown in Fig. 17-35 with q1 = 1.5μC and Q2 = 3.3μC. Find the potential difference between points A and B. 91 0.10 m 13 0.10 m
You might have noticed the below advertisement where the lottery winner will receive dollars 20,000 every month for the next 20 years suppose you win this lottery and have an option to receive a lump...
I am an avid hiker. Last summer, my friend G. Don and I went on a 5-day hike-and camp trip in the beautiful White Mountains in New Hampshire. We decided to limit our hiking to an area comprising...
If an initial fiscal restraint of $100 billion is desired, by how much must 1. Government spending be reduced? or 2. Taxes be raised? Assume MPC = 0.75.
What was the short run (one month) MPC for the 2008 tax rebates (News Wire "Fiscal Stimulus: Tax Cuts")?
What are the purposes of (a) The balance sheet, (b) The income statement, (c) The statement of retained earnings, and (d) The statement of cash flows?
You are the cost accountant of an engineering concern which has three departments - preparation, machining and assembly. The budgeted direct labour hours for the workshops are 8,000, 12,000 and...
What alternative to fostering fun and enjoyment at work do you think might have worked for Zappos?
Using the techniques of dimensional analysis, and assuming that experimentation shows the dimensionless number to be 1, derive the following equation: E v = Job card two The results of an ultrasonic...
Given the historical cost of product Carla Vista is $13, the selling price of product Carla Vista is $15, costs to sell product Carla Vista are $3, the replacement cost for product Carla Vista is...
What causes of outliers in statistics and when I create a boxplot why do I not see the outliers. What steps are to take in creating a boxplot?
Aslam Ismail, living in south London, exchanged his service station, acquired for 480,000 and written down to 284,000, for another (nearer his residence) with a market value of 275,000. At what value...
What do you think?
Over time, technological advance increases consumers' incomes and reduces the price of smartphones. Each of these forces increases the amount consumers spend on smartphones if the income elasticity...
Pham can work as many or as few hours as she wants at the college bookstore for $9 per hour. But due to her hectic schedule, she has just 15 hours per week that she can spend working at either the...
Potatoes cost Janice $1 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. If she feels that the first pound of potatoes is worth $1.50, the second pound is worth...
(15 points) Stressed $2.500,000 of S% 20 year bands. These bonds were issued Jary 1, 2017 and pay interest annually on each January 1. The bonds yield 3% and was issued at $325 8S! Required (2)...
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for...
1. A company issued 10%, 10-year bonds with a par value of $1,000,000 on January 1, at a selling price of $885,295 when the annual market interest rate was 12%. The company uses the effective...

If the marginal propensity to save is 0.20, (a) What is the MPC? (b) How large is

Question:

Step by Step Answer:

a 08 b 5 Explanation a The marginal propensity to save MPS i...View the full answer

Essentials of Economics

Students also viewed these Economics questions