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At L=4, K=4, the marginal product of labour is 2 and the marginal product of capital is 3. What is the marginal rate f technical substitution?
At L=4, K=4 MPl = 2, MPk = 3. Marginal Rate of Technical Substitution (MRTS) is the amount by which the quantity of one input has to be reduced when...
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calculate the marginal propensity to consumer when the aggregate output/income changes from 2500 to 300?
marginal propensity to consumer = change of consumption/ change of income If consumption is permanent and aggregate output/income changes from 2500 to 300 . we have decreasing of income by...
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the slope of the consumption function is measured by the marginal propensity to save. true or false
The slope of the consumption function tells us how much consumption increases when disposable income increases by one rupee. That is, the slope of the consumption function is the MPC.
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At L=4, k=4, the marginal product of labor is 2 and the marginal product of capital is 3. what is the marginal rate of substitution?
At L=4, K=4 MPl = 2, MPk = 3. Marginal Rate of Technical Substitution (MRTS) is the amount by which the quantity of one input has to be reduced when...
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If marginal propensity to save is 3/4, then the marginal propensity to consume is
MPC or Marginal propensity to consume is also given as, (1-MPS). Where, MPS is marginal propensity to save.So, if MPS =3/4Then MPC = (1-3/4) = 1/4 or 0.25
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If marginal propensity to save is 0.6 and the government decreases its spending by R50 billion, then south africa ' s real GDP or total income will
MPC=1-MPS=1-0.6=0.4m=1/MPC=1/0.4=2.5Total income will decreases:m*R2.5*50=125 billion
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Marginal propensity to save is 0.3. Calculate MPC and the expenditure multiplier.
Marginal propensity to save (MPS) is a part of the additional monetary unit received by the population, which increases the real cash income of the population and is aimed at...
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If the marginal income is $5,000 and the marginal propensity to save is 0.30, savings is: A. $90 B. $1,590 C. $3,500 D. $1,500 E. None of the above
D. $1,500
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Assume an economy has no imports and no taxes. If the marginal propensity to save is 0.8, by how much would autonomous expenditure have to increase, to cause real gdp to rise by 100 billion
If consumers spend 80 cents out of each dollar of disposable income, we can conclude that the government spending multiplier in a simple Keynesian model is 20.The multiplier will be 1...
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