If the government expenditures decrease by 100 million Euro and the aggregate demand decreases by 400, then the marginal propensity to consume is:
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If the government expenditures decrease by 100 million Euro and the aggregate demand decreases by 400, then the marginal propensity to consume is:
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- The potential GDP of the country is 380 billion euros, and the actual is 240. The marginal propensity to consume is 0.8. Determine the change in government expenditures to get to the equilibrium point:No more than five sentence. Briefly describe/discuss what are the positive impact of the tourism Multiplier effectDue to an increase in consumer wealth, there is a $40 billion autonomous increase in consumer spending in the economies of Westlandia and Eastlandia. Assuming that the aggregate price level is constant, the interest rate is fixed in both countries, and there are no taxes and no foreign trade, complete the accompanying tables to show the various rounds of increased spending that will occur in both economies if the marginal propensity to consume is 0.5 in Westlandia and 0.75 in Eastlandia. What do your results indicate about the relationship between the size of the marginal propensity to consume and the multiplier?
- What is the definition for the multiplier processIn the country of Borealis, the minimum amount of consumption spending that will occur is $300 - that is, no matter what level of income households have, the aggregate amount of consumption spending in the economy will be at least $300. In addition, for every extra dollar of national income, consumption spending will increase by $0.75.In a simple economy where there is no government and no international trade, the consumption function is given by the equation: C = £130m + 0.7Y What is the marginal propensity to save? a)0.7 b)1.0 c)0.3 d)130
- The table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. Real GDP, Y (billions of 2012 dollars) Consumption expenditure, C (billions of 2012 dollars) Investment, I (billions of 2012 dollars) Government expenditure, G (billions of 2012 dollars) 15 6 5 5 20 10 5 5 25 14 5 5 30 18 5 5 35 22 5 5 The marginal propensity to consume in Syldavia is equal to A. 0.40. B. 5.00. C. 0.80. D. 0.75. E. 0.20.The government raises taxes by Rs. 100 billion. If the marginal propensity to consumeis 0.6, what happens to the following – do they rise or fall? By what amounts? a) Public Savingb) Private Savingc) National SavingIf the MPC in an economy is 0.9, a $4 billion increase in government spending will ultimately increase consumption by
- The government raises taxes by $100 billion. If the marginal propensity to consume is 0.8 What happens to the following? Do they rise or fall? By what amounts? a)InvestmentIf your income increases from $40,000 to $48,000 and your consumption increases from $35,000 to $39,000, your marginal propensity to consume (MPC) isDisposable income - 200, 225, 250, 275, 300Consumption - 205, 225, 245, 265, 285 Refer to the above data. The marginal propensity to consume is;