Homework Answers
We assume that GDP is increasing continuously at 25. Hence change in Y is 25. Change in C is 20. This implies MPC = 20/25 = 0.8. Savings when Y = 300, and C = 300 so saviing = 0.
Use APC = C/Y and APS = S/Y for a given level of Y and C. MPS = 1 - MPC.
| GDP | C | S | MPC | MPS | APC | APS |
| 250 | 260 | -10 | 0.8 | 0.2 | 1.04 | -0.04 |
| 275 | 280 | -5 | 0.8 | 0.2 | 1.02 | -0.02 |
| 300 | 300 | 0 | 0.8 | 0.2 | 1.00 | 0.00 |
| 325 | 320 | 5 | 0.8 | 0.2 | 0.98 | 0.02 |
| 350 | 340 | 10 | 0.8 | 0.2 | 0.97 | 0.03 |
| 375 | 360 | 15 | 0.8 | 0.2 | 0.96 | 0.04 |
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Econ 2)1 Given the following figures, calculate savings, MPC, MPS, and Multiplier (20 points) 1. C...
if c=20 +0.9Y c=consumption y=disposable income=800 billion what is the multiplier? also calculate MPS MPC APS...
if c=20 +0.9Y c=consumption y=disposable income=800 billion
what is the multiplier?
also calculate MPS MPC APS APC
and what is the value of saving for the nation?
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if c=20 +0.9Y c=consumption y=disposable income=800 billion
what is the multiplier?
also calculate MPS MPC APS APC
and what is the value of saving for the nation?
Question 2 If C = 20 + 0.99 C= Consumption Y = disposable income = $800 billion What is the Multipler? Ob.0.1
Which of the following relations is not correct? Multiple Choice 1- MPC MPS MPC + MPS = 1. MPS = MPC + 1. APS + APC = 1.
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need answer
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