Macroeconomics equations, economics homework help
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Answer the following questions about marginal propensity to
consume and the multiplier. First provide the correct equation and
then show your work to arrive at the answer:
-
What is the marginal propensity to
consume when consumption changes from 7 to 6 and disposable income
changes from 5 to 3? -
If disposable personal income is
10 and consumption is 12, what is personal savings? What
does this mean? -
What is the multiplier when the
change in equilibrium level of real GDP in the aggregate
expenditures model is 9, and change in autonomous aggregate
expenditures is 3? -
What is the multiplier when the
marginal propensity to save is 1/3? -
What would happen to the marginal propensity to save when a
tax cut was enacted causing the multiplier to change to 5?
The following criteria will be used to grade the papers:
-
Correct equations are used and
shown -
Explanations are correct
-
Calculations are correct.
-
Answers are correct
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