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The marginal propensity to consume is
In economics, the marginal propensity to consume (MPC) is an empirical metric that quantifies induced consumption, the concept that the increase in personal consumer spending (consumption) occurs with an increase...
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Suppose the marginal propensity to consume (MPS) equals 0.20, an increase in autonomous investment of $100 will lead to an increase in real Gross Domestic Product (GDP) by:
Multiplier effect is an effect in economics, in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. If MPS =...
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Suppose that for a two sector model, the marginal propensity to consume (mpc) is 90%. What is the induced consumption expenditure equal to ?
induced consumption expenditure = 0.9*Income
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If the discretionary income in a nation rises from $13 trillion to $15 trillion and consumption spending increases from $12 trillion to 13.5 trillion what is the marginal propensity to consume?
marginal propensity to consume = (consumption spending2 - consumption spending1)/( income2 – income1) = ($13.5 - $12) / ($15-$13) = 0.75
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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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autonomous consumption c1=R200
autonomous investment =R600
marginal propensity to consume c= 3/4
the equilibrium level of income is
(1) R8000
(2) R32000
(3) R6000
(4) R2000
Y=C+IC=a+cYY=200+0.75Y+6000.25Y=800Y=3200Since this answer doesn't exist, I've decided that it is 8000
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autonomous consumption c1=R2000
autonomous investment =R6000
marginal propensity to consume c=3/4
the value of the multiplier is
(1) 3/4
(2) 1/4
(3) 5
(4) 4
(4) 4If MPC = 3/4 or 0.75, multiplier is=1/(1-0.75) = 1/0.25 = 100/25 = 4
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If the marginal propensity to consume equals 0.75, what change in government spending financed by borrowing from the private sector could eliminate the gap identified in part (a)
A change in government spending that can eliminate the gap identified should be equal to the taxation offered to private sector
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