Simple Multiplier - MCQ Revision Question
2:18
Simple Multiplier - MCQ Revision Question
Here is a calculation question drawing on the simple multiplier used for a closed economy with no government. In this (limiting) case, the only leakage from the circular flow is savings. Once we know the value of the marginal propensity to save, we can deduce the value of the marginal propensity to consume.
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SOLVED: FIGURE 23-Refer to Figure 23-5 . Suppose that an increase in autonomous investment caused the A D curve to shift to the right, as shown. If the simple multiplier in this model is 4 , then how much was the increase in investment?Select one:a. 30b. 4050d. 12e. not enough information
SOLVED: FIGURE 23-Refer to Figure 23-5 . Suppose that an increase in autonomous investment caused the A D curve to shift to the right, as shown. If the simple multiplier in this model is 4 , then how much was the increase in investment?Select one:a. 30b. 4050d. 12e. not enough information
numerade.com
Mar 2, 2021
SOLVED: FIGURE 23-5Refer to Figure 23-5. Suppose that an increase in autonomous investment caused the A D curve to shift to the right, as shown. If the simple multiplier in this model is 5 , then what is the value of the multiplier?Select one:a. 1,2b. 1.5c. 4.0d. 5.0e. not enough information
SOLVED: FIGURE 23-5Refer to Figure 23-5. Suppose that an increase in autonomous investment caused the A D curve to shift to the right, as shown. If the simple multiplier in this model is 5 , then what is the value of the multiplier?Select one:a. 1,2b. 1.5c. 4.0d. 5.0e. not enough information
numerade.com
Mar 2, 2021
In the simple multiplier model, assume that investment is always zero. Show that equilibrium output in this special case would come at the break-even point of the consumption function. Why would equilibrium output come above the break-even point when investment is positive? | Numerade
In the simple multiplier model, assume that investment is always zero. Show that equilibrium output in this special case would come at the break-even point of the consumption function. Why would equilibrium output come above the break-even point when investment is positive? | Numerade
numerade.com
Apr 12, 2020
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