Need help of solving EC homework ASAP pls. Thank you in advance! Q1. Calculate M

ID: 1192854 • Letter: N

Question

Need help of solving EC homework ASAP pls. Thank you in advance!

Q1. Calculate MPC, 0.33/0.75/0.60/0.65/0.35, I calculated but not sure is right or not.

Q2 MPI: 0.35/0.65/0.15/0.75 Q3 Spending multiplier is______.

Q4 Change in Investment Spending = -250 billion

First Change in Consumption= $-125 billion/-75billion/-250 billion/ -50 billion

Second Change in Consumption= -62.5billion/-100billion/-125billion/-87.5 billion

Total Change in Output= -$1.5trillion/ -$2trillion / -$250billion/ -$500billion

Q5. True or False: the multiplier effect of a change in investment spending is higher than it would be if it took consideration the effect of taxes.

Marginal propensity to consume implies a portion of additional income that individuals consumes.

Here MPC = 0.65 = 65%

And MPC = MPC of imports + MPC of economy

Thus MPC of economy = MPC - MPC of imports = 0.65 - 0.15 = 0.50

And spendng multiplier = Income - MPC = 1 - 0.65 = 0.35 or 35%

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