Why does the multiplier effect get larger as the marginal propensity to consume gets larger?

Question:

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

Step by Step Answer:

Related Book For book-img-for-question

Exploring Economics

ISBN: 9781544336329

8th Edition

Authors: Robert L. Sexton

See More Books

Question Posted: Jan 23, 2023 02:34 AM

See More Questions

Why does equilibrium output increase as the marginal propensity to consume increases?
If your marginal propensity to consume was 0.75, what would be your marginal propensity to save? If your marginal propensity to consume rose to 0.80, what would happen to your marginal propensity to...
An economy has a marginal propensity to consume of 0.5, and Y*, incomeexpenditure equilibrium GDP, equals $500 billion. Given an autonomous increase in planned investment of $10 billion, show the...
No Opportunity Costs The Van Division of MotoCar Corporation has offered to purchase 180,000 wheels from the Wheel Division for $41 per wheel. At a normal volume of 500,000 wheels per year,...
The article Vital Dimensions in Volume Perception: Can the Eye Fool the Stomach? (Journal of Marketing Research [1999]: 313 326) gave the accompanying data on the dimensions of 27 representative food...
Woodland Industries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated...
A parallel-plate capacitor in which the plates are extendable is connected to a battery and charged until there is a charge $+q$ on one plate and a charge $-q$ on the other plate. (a) With the...
Four Seasons Industries has established direct labor performance standards for its maintenance and repair shop. However, some of the labor records were destroyed during a recent fire. The actual...
61. The solubility product of CuS, AgS and HgS are 10 37, 104 and 1054 respectively. The solubility of these sulphides will be in the order (1) HgS> AgS > Cus (2) AgS>HgS > CuS (3) CuS AgS > HgS (4)...
Why wont a steady growth of the money supply generate a constant inflation rate over time?
Why would a more credible commitment by the Fed to a stable price level tend to reduce long term interest rates?
Calculate the marginal propensity to save. You are given the following information about the economy of Australia: Saving (billions of dollars per year) Disposable income 0 100 200 300 400 0 25 50 75...
Voon Sdn Bhd is supplier specializing on face mask shield. The following were the purchases and issues of face mask shield from the record during Dec 2022. Dec 1 Opening balance 4 Purchase 5 Sold 8...
A vehicle manufacturer enters into a contract with a parts manufacturer to purchase parts for $75,000,000.00 when the parts will be ready at year two. What is the present worth of the contract if the...
A manager at a mold and die company software design firm is purchasing a new communication system. If the company makes payments of $15,000.00 per year for fouryears, what amount will the company...
A piece of land in Ottawa with an area of 0.5 square kilometers is priced at 5200 Canadian dollars. If there are 0.9955 Canadian dollars per (U.S.) dollar, then what is the price in dollars per...
The deal reads: $5,000 guarantee vs. 90% GBOR, whichever is greater Other information: NBOR = $2,000 Additional Show Expenses = $1500 What is the amount of the Artist's Payment?
A particular house wall consists of three layers and has a surface area of 30 m2. The inside layer is 10 mm thick and made of plaster board with a thermal conductivity of k = 0.2 W/(m.oC). The middle...
What are the risks and liability factors in an audit? What are the implications to the auditor? What are the implications to the organization? How can the auditor mitigate these risks and liability...
Suppose that the United States were running a currentaccount deficit. How would each of the following changes influence the size of the current-account deficit? a. A recession in the United States b....
Suppose the exchange rate between the United States and Mexico freely fluctuates in the open market. Indicate whether each of the following would cause the dollar to appreciate or depreciate relative...
The accompanying chart indicates an actual newspaper quotation of the exchange rate of various currencies. On February 2, did the dollar appreciate or depreciate against the British pound? How did it...
Elephants can create and detect infrasonic sounds sounds with frequencies lower than about 2 0 Hz which can travel long distances. They create these sounds using the cavity that extends from their...
An object with mass of 5 kg, specific heat of 300 J/kgC, surface area of 0.02 m2 , and initial temperature of 25C is placed in a convection oven with internal temperature of 200C and heat transfer...
A point charge Q1 = 70 nC, is located at the point (-0.5 mm, 1.0 mm) of an xy plane. Another charge, Q2 = -90 nC, is at the point (-2.0 mm, -9.0 mm). Find the y component of the electric force vector...

Why does the multiplier effect get larger as the marginal propensity to consume gets larger?

Question:

Step by Step Answer:

The larger the marginal propensity to consume the larger the frac...View the full answer

Exploring Economics

Students also viewed these Business questions