What is the relationship between the MPC and the multiplier?
Question:
What is the relationship between the MPC and the multiplier?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
The value of multiplier is determined by the marginal propensity to consume Higher the ...View the full answer
Answered By
Sarthak mishra
I have almost three years of experience in teaching the economics of classes 11 and 12 . I assist students in learning and understanding various subjects and in creating better study habits and strategies for completing tasks on time.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
What is the relationship between the mpc, the mpcdand the mpw?
-
A. If consumption increases by $12 billion when real disposable income increases by $15 billion, what is the value of the MPC? B. What is the relationship between the MPC and the MPS? C. If the MPC...
-
If consumption increases by $12 billion when real disposable income increases by $15 billion, what is the value of the MPC? What is the relationship between the MPC and the MPS? If the MPC rises,...
-
Describe some practical examples of the single-resource sequencing problem.
-
One form of the formula that meteorologists use to calculate wind chill temperature (WC) is WC = 35.74 + 0.6215t - 35.75s0.16 + 0.4275t s0.16 where s is the wind speed in mph and t is the actual air...
-
P(z > 2.55) Find the indicated probability using the standard normal distribution. If convenient, use technology to find the probability.
-
While completing this homework, imagine the study space you are using employs a space heater with a rating of \(30 \mathrm{~kW}\), a refrigerator (for snacks) that is rated for \(5 \mathrm{~kW}\),...
-
AV City (Problem 13-1) assumed with certainty that the ordering cost is $625/order and the inventory carrying cost is $130/unit/year. However, the inventory model parameters are frequently only...
-
Consider that you are 35 years old and have just changed to a new job. You have $143,000 in the retirement plan from your former employer. You can roll that money into the retirement plan of the new...
-
Able and Body are unrelated individuals. In September of the present year, they decide to form I Can Too Corporation. Able contributes a building and land with a basis of $35,000 and and a fair...
-
Given the Keynesian consumption function, how would a cut in income tax rates affect consumption? Explain your answer
-
Explain how a rise in autonomous spending can increase total spending by some multiple.
-
Distinguish between static and dynamic content and methods of achieving them.
-
Does the component cost of preferred stock include or exclude flotation costs? Explain.
-
Describe the advantages and disadvantages of the six capital budgeting methods.
-
Is the relevant cost of debt, when calculating the WACC, the interest rate on already outstanding debt or the rate on new debt? Why?
-
Identify problems that occur when estimating the cost of capital for a privately held firm. What are some solutions to these problems?
-
Why are flotation costs higher for stock than for debt?
-
The figure shows the areas of regions bounded by the graph of f and the x-axis. Evaluate the following integrals. y = f(x) 16 11 5 / f(x) dx
-
How do network effects help Facebook fend off smaller social-networking rivals? Could an online retailer doing half as much business compete on an equal footing with Amazon in terms of costs? Explain.
-
Will a direct increase in the price of U.S. goods relative to foreign goods lead to a change in the quantity demanded of Real GDP or to a change in aggregate demand? Will a change in the exchange...
-
Explain how each of the following can affect short-run aggregate supply: (a) An increase in wage rates; (b) A beneficial supply shock; (c) An increase in the productivity of labor; (d) A decrease in...
-
What is the difference between a change in the quantity supplied of Real GDP and a change in short-run aggregate supply?
-
Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold during the quarter...
-
Provide documentation of a step by step training plan for a beta fish. What will be the primary reinforcer? How will you cue the behavior? What schedule of reminforcement will you use. What is the...
-
On May 1, Soriano Company reported the following account balances along with their estimated fair values: Items Carrying Amount Fair Value Receivables Inventory Copyrights Patented technology Total...
Study smarter with the SolutionInn App