Answer to Question #94436 in Macroeconomics for Nomthandazo

Question #94436

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

Expert's answer

(4) 4

If MPC = 3/4 or 0.75, multiplier is

=1/(1-0.75) = 1/0.25 = 100/25 = 4

Learn more about our help with Assignments: Macroeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. autonomous consumption c1=R200 autonomous investment =R600 marginal propensity to consume c= 3/4
2. The consumer price index (CPI) can be used to measure inflation. There are potential problems with t
3. which one of the following statement is correct regarding the Keynesian model with the government se
4. which one of the following statement is correct (1) a decrease in net exports will decrease the equ
5. to get the equilibrium level of income in the simple Keynesian model (1) we multiply the autonomous
6. which one of the following statement regarding consumption spending is correct (1) total consumptio
7. which one of the following statement regarding the assumption of the Keynesian model (1) the simple

Who Can Help Me with My Assignment

There are three certainties in this world: Death, Taxes and Homework Assignments. No matter where you study, and no matter…
How to Finish Assignments When You Can’t

Crunch time is coming, deadlines need to be met, essays need to be submitted, and tests should be studied for.…
How to Effectively Study for a Math Test

Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…