An MPC equal to 0 implies a multiplier of 1, meaning that a $1 increase in autonomous
Question:
An MPC equal to 0 implies a multiplier of 1, meaning that a $1 increase in autonomous expenditures would increase real GDP by only $1. Why does an MPC equal to 0 result in no multiplier effect? Conversely, an MPC equal to 1 implies an infinite multiplier, meaning that a $1 increase in autonomous expenditures would increase real GDP by an infinite amount. Why does an MPC of 1 result in an infinite multiplier? Explain your answers using the logic of the multiplier process.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
An MPC of 0 results in no multiplier effect because ...View the full answer
Answered By
Nicole omwa
Being a highly skilled tutor with at least 5 years of tutoring experience in different areas, I learned how to help diverse learners in writing drafts of research papers, actual research papers and locate credible sources. My assurance is built upon my varied knowledge of a variety of subjects. Furthermore, my involvement and interaction with numerous learners of all levels has allowed me to understand my clients' specific demands. Ultimately, this has aided me in being a better coach to learners to better their grades. Essentially, my responsibilities as a tutor would include:
Teaching abilities that assist pupils in enhancing their academic performance
Personal interaction with learners to make them understand abstract concepts
Inducing new skills and knowledge into their academic journeys
Fostering individual reflection, and independent and critical thinking
Editing and proofreading
Because I am constantly available to respond to your queries, you may decide to rely on me whenever you require my assistance. As an assurance, my knowledge skills and expertise enable me to quickly assist learners with different academic challenges in areas with difficulty in understanding. Ultimately, I believe that I am a reliable tutor concerned about my learner's needs and interests to solve their urgent projects. My purpose is always to assist them in comprehending abstract schoolwork and mastering their subjects. I also understand that plagiarism is a severe offense and has serious ramifications. Owing to this, I always make it a point to educate learners on the numerous strategies to have uniquely unique solutions. I am familiar with the following formatting styles:
MLA
APA
Harvard
Chicago
IEEE
Communication is always the key in every interaction with my learners. Hence, I provide timely communication about the progress of assigned projects. As a result, I make sure that I maintain excellent communication with all of my clients. I can engage with all of my customers more effectively, assisting them with their unique academic demands. Furthermore, I attempt to establish a solid working relationship with my leaners I have exceptional abilities in the below areas;
Sociology
History
Nursing
Psychology
Literature
Health and Medicine
Chemistry
Biology
Management
Marketing
Business
Earth Science
Environmental Studies
Education
Being a teacher who aces in diverse fields, I provide various academic tasks, which include;
Academic Reports
Movie Reviews
Literature Reviews
Annotated bibliographies
Lab reports
Discussion posts
Dissertations
Case study analyses
Research proposals
Argumentative Essays
I guarantee you high-quality Papers!!!!!
5.00+
17+ Reviews
32+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
True or False: 1. The aggregate expenditure model is best seen as a model of aggregate demand, and not a complete model of the economy. 2. The components of aggregate demand depend on the price...
-
True or False: 1. The multiplier would be smaller if the marginal propensity to consume were smaller. 2. If the MPC were equal to two-thirds, the multiplier would be equal to 3. 3. The multiplier may...
-
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...
-
Problem 3.6.1 Given the random variable Y in Problem 3.4.1, let U = g(Y) = Y2. (a) Find Pu(u). (b) Find Fu(u). (c) Find E[U].
-
Jean has decided it is time to purchase a new battery for her car. Her choices are: Jean believes the batteries can be expected to last only for the guarantee period. She does not want to invest...
-
Write a brief, but critical, account of the hydrogen bond.
-
Andrew Reitz established a trust in 2000, naming his sons, James and John, as sole beneficiaries and himself as trustee. Upon Andrews death, Hal Rachal Jr., the attorney who drafted the trust, became...
-
The Colonial House Furniture Company manufactures two-drawer oak file cabinets that are sold unassembled through catalogues. The company initiates production of 150 cabinet packages each week. The...
-
(20 pts) Design a combinational circuit that counts ones at its inputs. The circuit has three 1-bit binary inputs (x, y, z) and two 1-bit binary outputs (f2, f1). "f2f1" is "00" if none of the inputs...
-
We wish to determine the depth of a swimming pool filled with water. We measure the width (x = 5.50m) and then note that the bottom edge of the pool is just visible at an angle of 14.0o above the...
-
An article in the Wall Street Journal stated, Europe is entering its fifth consecutive year of growth, supported by accommodative monetary policies, robust business and consumer confidence and...
-
Using data from the Federal Reserve Bank of St. Louis (FRED) (fred.stlouisfed.org), analyze the effect of a decline in exports on GDP. a. Download data since 1990 on real exports of goods and...
-
If both the current and the voltage in a circuit are doubled, the power (a) remains unchanged if the resistance is constant. (b) is halved. (c) is doubled. (d) is quadrupled.
-
You will submit this assignment using the Text Submission box that appears when you click on the Write Submission button in the assignment submission section. To avoid timing out the system, it is...
-
It takes 5 minutes, 8 seconds to play a song at 120 beats per minute. How long does it take to play the same song at 140 beats per minute? (Round your answer to the nearest second.) 4 minutes 24...
-
Due to the COVID pandemic, there is urgent need for a medical product that only two firms have the capabilities to produce. It is understood that this is a "one shot game" in that once the initial...
-
It takes 2 cups of water to cook 1 cup of rice. CLEARCHECK How much rice can you cook with 0.5 cups of water?
-
CASE Pansy Jewelry Limited ("PJL") is a company listed on the Main Board in Hong Kong and is principally engaged in the manufacture and distribution of jewelry. PJL and its subsidiaries (the "Group")...
-
What is the annual benefit of parents gifting $300 each year to their child if the parents are in the 35 percent bracket and the child is in the 15 percent bracket?
-
If 2 5 9 - k 5 8 = 2 5 8 , what is the value of k?
-
(a) Compute the equivalent annual inflation rate, based on the consumer price index, for the period from 1981 to' 1986. (b) Using the equivalent annual inflation rate computed in part (a), estimate...
-
You are considering the purchase, for $15,000, of an annuity that pays $2500 per year for the next 10 years. You want to have a real rate of return of 5%, and you estimate inflation will average 6%...
-
Inflation is a reality for the general economy of the United States for the foreseeable future. Given this assumption, calculate the number of years it will take for the purchasing power of today's...
-
Pat and Ralph each own a 50 percent interest in PR partnership. PR partnership sells Asset 1 and recognizes gain of $100,000, of which $50,000 is allocated to Pat and $50,000 is allocated to Ralph....
-
Explain briefly the CSC Reference Provided . Policy Details User Role Definitions: Accounts Receivable Manager: Authorized to create, manage, and view all accounts receivable transactions and...
-
5 B C E F G Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down...
Study smarter with the SolutionInn App