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If the marginal propensity to consume is 0.75. what would be the multiplier?
Jameslee0712
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Gugu Precious Gumede
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If Marginal propensity to consume of 06 and a marginal propensity to import of 02 the government increases its spending by 2 billion and raises taxes by 1 billion what happens to equilibrium income?
The equilibrium income would increase 1.06 billion dollars.
If the marginal propensity of consumption begins to decline what will happen to the average propensity of consumption?
If the marginal (per unit) consumption goes down, then the average consumption will also go down because the average is a function of each unit's individual value. In other words, if the marginal perpensity to consume for the past 3 months was .2 each month, and for the next month it went down to .1, then your average would be: Month 1 Avg = .2 Month 2 Avg = .2 (.2+.2/2) Month 3 Avg = .2 (.2+.2+.2/3) Month 4 Avg = .175 (.2+.2+.2+.1/4)
What are the assumptions of the law of diminishing marginal utility?
An assumption is that as you consume more and more of a good the marginal utils will decrease with every additional unit. Utils measure consumers happiness level. If you had one ice cream you would be very happy, if you had two ice creams you would be happy, if you had three ice creams you would feel like you were getting suck. This demonstrates that with every additional unit of a good, the happiness you get from that additional good is not as much as the happiness that came from the good before.
If the MPC is point 5 the tax multiplier would be what?
Since MPC+MPS=1 Then MPS=1-0.5=0.5 Tax Multiplier= -(MPC/MPS)=-0.5/0.5= -1
When would the total utility of a good and the marginal utility of a good be the same?
total utility and marginal utility are the same for the first unit of good consumed.
If Marginal propensity to consume of 06 and a marginal propensity to import of 02 the government increases its spending by 2 billion and raises taxes by 1 billion what happens to equilibrium income?
The equilibrium income would increase 1.06 billion dollars.
If the marginal propensity of consumption begins to decline what will happen to the average propensity of consumption?
If the marginal (per unit) consumption goes down, then the average consumption will also go down because the average is a function of each unit's individual value. In other words, if the marginal perpensity to consume for the past 3 months was .2 each month, and for the next month it went down to .1, then your average would be: Month 1 Avg = .2 Month 2 Avg = .2 (.2+.2/2) Month 3 Avg = .2 (.2+.2+.2/3) Month 4 Avg = .175 (.2+.2+.2+.1/4)
Can a government spending multiplier be a value of less than 1?
Quite simply, no. The Spending multiplier, even on government spending, will always have a value of greater than one. It really is self-evident; for that money to be subjected to a multiplier, it must be circulating multiple times, therefore the first circulation (the initial spending) would result in a multiplier of one, and subsequent spends would increase the multiplier further
Which multiplier would you use to convert km to meters?
The multiplier you would use is 1000.1.9 km x 1000 = 1900 m
If government spending increases 5B and your MPC is a 90 how much does GDP increase?
From such an action (increase in government spending by 5 billion and a Marginal Propensity to Consume of 90%), the GDP would increase (in the scope of simplicity) by 4.5 billion. This is because government expenditures is counted in GDP, and in this case 90% of it is consumed by the populace, so 5B * .9 = 45B. But, being that the GDP is Consumption + Gross Investment + Govt. Spending +(-) Imports/exports, one could suggest that the GDP would increase by just 5B because that which is not consumed is saved (and thus invested).
If the market price for a chair is 24 and the marginal cost for the chair is 7 the marginal revenue from the chair would be .?
17
What is the decimal multiplier to decrease by 78?
No such multiplier is possible.78 decreased by 78 is 0, so the decimal multiplier would to be 0. 156 decreased by 78 is 78 so the multiplier is 0.5. 1000000 decreased by 78 is 999922 so the multiplier is 0.999922 and so on. A different multiplier in each case.
What is multiplicand mean in terms of math?
The quantity to be multiplied by the multiplier is called multiplicand. Say sin(x) is multiplied by 5. Then sin(x) is the multiplicand. 5 is the multiplier. If sin(x) is the multiplier, then 5 would become the multiplicand.
What is the least common multiplier of 9 and 15?
The LCM would be 45.
Which multiplier would you use to convert 1.9 km to meters?
1000
How do you compute the Marginal Cost of Capital schedule?
Marginal or incremental cost of capital is cost of the additional capital raised in a given period
What are the assumptions of the law of diminishing marginal utility?
An assumption is that as you consume more and more of a good the marginal utils will decrease with every additional unit. Utils measure consumers happiness level. If you had one ice cream you would be very happy, if you had two ice creams you would be happy, if you had three ice creams you would feel like you were getting suck. This demonstrates that with every additional unit of a good, the happiness you get from that additional good is not as much as the happiness that came from the good before.
