What will the multiplier be when the MPS is 0, 0.4, 0.6, and 1? What will it
Question:
What will the multiplier be when the MPS is 0, 0.4, 0.6, and 1?
What will it be when the MPC is 1, 0.90, 0.67, 0.50, and 0? How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC is 0.80? If the MPC instead is 0.67?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
Multiplier based on Marginal Propensity to Save MPS and Consume MPC Formula The multiplier is calcul...View the full answer
Answered By
ANDREW KIPRUTO
Academic Writing Expert
I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments.
I can help you in the following areas:
Networking
- Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM
- Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP
- Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more
- Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo
Always available for new projects! Contact me for any inquiries
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
Question Posted:
Students also viewed these Business questions
-
What is the multiplier effect? What relationship does the MPC bear to the size of the multiplier? The MPS? What will the multiplier be when the MPS is 0, .4, .6, and 1? What will it be when the MPC...
-
By how much will GDP change if firms increase their investment by $8 billion and the MPC is .80? If the MPC is .67?
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Suppose that we throw 30 fair dice. Recall that a fair die has six sides, numbered from 1 to 6, with each side occurring with equal probability. (a) (3pts) What is the probability that 5 of each of...
-
Discuss whether the changes described in each of the situations below require recognition in the audit report as to consistency. (Assume that the amounts are material.) a. The company changed its...
-
Identify f as being linear, quadratic, or neither. If f is quadratic, identify the leading coefficient a and evaluate f(-2). f(x) = 1/-/x 10
-
What are your views on a firm that replaces its one-tier board with a two-tier board and then, a few years later, reverts to a one-tier board, like Suez did, or which asks its chief executive officer...
-
Rollins Publishing needs to decide what textbooks from the table at the top of the next column to publish. For each book, the maximum demand, fixed cost of publishing, variable cost, and selling...
-
YouTube Maps ed: Chapter 13 Assessment Saved Help Save & Exit Submit aunton's is an all-equity firm that has 153,500 shares of stock outstanding. The CFO is considering borrowing $263,000 at 6...
-
True or False. The aggregate expenditures model assumes flexible prices.
-
Refer to the table in Figure 10.5 and suppose that the real interest rate is 6 percent. Next, assume that some factor changes such that the expected rate of return declines by 2 percentage points at...
-
Lola Corporation has two departments that produce two separate product lines. The company has been implementing total quality management over the past year. Revenue and costs of quality for that year...
-
Which of the following would not be appropriate to a report on an engagement to apply agreed-upon procedures to specified financial statement items? a. Indicate the intended distribution of the...
-
Following are selected questions from an internal control questionnaire for a company's investment transactions. The questions relate to the custody, recording, and valuation of investments, and to...
-
What requirements does SAS No. 65, "The Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements" impose upon independent auditors regarding internal auditors?
-
As a result of highly profitable operations over a number of years. Eastern Manufacturing Corporation has accumulated a substantial investment portfolio. In auditing the financial statements for the...
-
Which of the following procedures would likely lend insight into the risk of material misstatement arising from violations of laws and regulations? a. Confirming receivables balances with debtors. b....
-
Alex purchases a building in 1986 at a cost of $500,000. ACRS depreciation on the building totals $320,000, whereas straight-line depreciation would be $260,000 for the same period. Alex sells the...
-
Let X be a random variable taking on values a1, a2, . . . , pr with probabilities p1, p2, . . . , pr and with E(X) = μ. Define the spread of X as follows: This, like the standard deviation, is a...
-
Consider a specific example of the special-interest effect and the collective-action problem. In 2012, it was estimated that the total value of all corn-production subsidies in the United States was...
-
Look back at Figures 5.2a and 5.2b, which show the costs and benefits to voters Garcia, Johnson, and Lee of two different public goods that the government will produce if a majority of voters support...
-
Look back at Figures 5.2a and 5.2b, which show the costs and benefits to voters Garcia, Johnson, and Lee of two different public goods that the government will produce if a majority of voters support...
-
Please help me to solve these questions. Thank you so much! 1. Which of the following is not correct relating to financial statement audit? A) Financial statement audits of today place more emphasis...
-
Wham Products, a maker of specialty products, is currently manufacturing and selling a product called Gory Goo. A discount department store, J-Mart, has made a one-time offer to purchase 58,000 units...
-
Lunar Entertainment is a provider of cable, Internet, and on-demand video services. Lunar currently sends monthly bills to its customers via the postal service. Because of a concern for the...
Study smarter with the SolutionInn App