The permanent-income theory of consumption implies that Multiple Choice the short-run multiplier is smaller than the long-run multiplier the short-run multiplier is larger than the long-run multiplier
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- 1. What would happen to multiplier if investment were to be positively related to income? 2. is it possible for total saving to fall when people beome more thirfty? 3. What is meant by multiplier?Why shoul the value of multiplier rise when people spend more on consumption?please explain this dynamic multiplier graph that given1f the Consumption funchon, espressedas C=30+0,7Yd, chayes to C=20+028Yd. which of the fellowing will accaur? OThe Cansumption function Shifts.doon in. Parallel. 6 its slope Anckeases as the Consumpion functionmaes up O Hs Slape ockeases as the Sausing function. slides up its Slope 1wereases as the Consumption function. slides dacana O it sope deExeAses as the Saurisq function. sltdes down. the Sauting
- Refer to the dlagram glven below. Consumption Income The diagram given above shows consumptlon schedules. As Income rises, the marginal propensity to consume remains constant for. Multiple Cholce only C3- O only C. C2, ano C3. none of the consumption schedules. Drov 17ot 72 NextIf Larry Page, one of the cofounders of Google, spends $100,000 on the new Tesla electric vehicle because he has an optimistic view of the future, then: O income in the economy increases by $1,000,000, if the MPC is 0.8. O income in the economy increases by $500.000, if the MPC is 0.9. O Income in the economy increases by $400,000, If the MPC is 0.75. O income in the economy increases by $300,000, if the MPC is 0.5.Question Another important aspect of Tourism Economics is the multiplier effect, which refers to the additional economic activity generated by tourism spending. When tourists spend money in a destination, it circulates through the local economy, benefiting not just the direct recipients of this spending but also other businesses and their employees. For example, tourists spending money in local restaurants support not only the restaurant staff but also local suppliers and their workers. The multiplier effect in Tourism Economics is essential because it: A) Reduces overall economic activity B) Only benefits the tourism sector C) Generates additional economic activity beyond the initial spending D) Leads to economic stagnation
- Moving along the aggregate supply curve, O the real wage rate is constant. O technology advances. O only the price level changes. O the stock of human capital increases. O the quantity of capital used increases.consumer's expenditure minimization problem explain in detail both theoretically and practically ?Which of the following will raise consumer expenditures, C? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с d a general increase in housing prices. an increase in interest rates. an increase in expected future income. an increase in the price level.
- 9 swered t of 1.00 uuestion Refer to the information provided in Figure 8.11 below to answer the questions that follow. Aggregate expenditures ($ millions) 200 50 Figure 8.11 0.0 45° AE 200 Aggregate output ($ millions) Refer to Figure 8.11. A $10 million decrease in autonomous consumption Select one: O a. changes equilibrium output to $120 million. b. increases the MPS. c. changes equilibrium expenditure to $160 million. d. increases the MPC.You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)1. Supposs economy that un C = 100+0.8 I =70 G =200, TR=150, t =0.20 (a alculati eguilibrium leuel of inomo and multiplier (b) Calculati budgit ourplus (C what will be the new equilibrium income and new multiplur G) Deriu the r ik t increases to O.25. balanced budg et multiplier. (111) Undur what circums tances can the LM Cure be horizontal 9 Use a diagram also. treuer
