Multiplier

Related BrainMass Solutions

• a spending multiplier question

  MPC = 0.8, multiplier =1/(1-0.8)=5
  And from ΔY / ΔG = multiplier
  We getΔY=ΔG* multiplier = 10*5 = 50 billion
  
  c.

• Expenditure and Tax Multipliers

  Spending multiplier 1/(1-MPC) =1/(1-0.75) = 4 ==> A decrease in G will decrease GDP by ΔG * expenditure multiplier = (-10) (4) = - $40 billion d.

• Federal Reserve problem

  money multiplier = 1 / Reserve Ratio when Reserve Ratio=0.10, money multiplier = 1 / 0.1 = 10 when Reserve Ratio=0.05, money multiplier = 1 / 0.05 = 20 so money multiplier increases from 10 to 20 when Reserve Ratio=0.15, money multiplier = 1 /

• Multiplier: Replenishment of Business Inventories

  This is due to the multiplier as discussed above. www.en.wikipedia.org/wiki/Multiplier This solution explains the concept of multiplier.

• Simple spending multiplier

  54814 Simple spending multiplier 9.

• government spending multiplier

  165713 If the government spending multiplier is 6, what is the tax multiplier? Please see the attached file. 1. If the government spending multiplier is 6, what is the tax multiplier? 2.

• Value of the multiplier & sum of saving

  en.wikipedia.org/wiki/Multiplier This explains the concept and computation of value of the multiplier, the sum of saving and net taxes, and how the multiplier is related to the slop of the consumption function.

• expenditure multiplier and tax multiplier

  15908 Expenditure Multiplier and Tax Multiplier Problem No. 1 - Multiplier Computation Compute the expenditure multiplier and tax multiplier if the MPC is 1. 0.80 2. 0.60 3. 0.90 Problem No. 2 - Changes to National Income (Y) Suppose that

• Olympic games in London in 2012

  Since the government-spending multiplier is spending multiplier = 1 / (1-MPC), and the tax multiplier is tax multiplier = - MPC / (1-MPC).

• Money Multiplier & Currency holdings

  of the banks is the third factor that affects the money multiplier.