skibinskimikey9186 skibinskimikey9186
  • 23-03-2022
  • Business
contestada

Suppose the marginal propensity to save (MPS) is equal to 0.25. According to the text, a $100 increase in investment spending will lead to a:

Respuesta :

Parrain
Parrain Parrain
  • 01-04-2022

Based on the marginal propensity to save and the increase in investment spending, there will be an increase of $400 in equilibrium income.

What will be the change in Equilibrium income?

This can be found as:

= Change in investment spending x Multiplier

Multiplier is:

= 1 / Marginal propensity to save

= 1 / 0.25

= 4

Change in equi. income is:

= 100 x 4

= $400

Find out more on the marginal propensity to save at https://brainly.com/question/26769701.

Answer Link

Otras preguntas

Show the pupils their marks. Direct object or indirect object
i need help with these two questions ASAP and preferably shown work.. Thank you!
culture of northern Africa
please help me! (show the solution)​
Is this a proportional relationship? Please help!
As part of a school project, Juanita was asked to draw an accurate sketch of her bedroom. using the dimensions and scale shown, determine the actual area of her
Which of the following thesis statements would best support the following research question? How is a chocolate bar created? Candy bars were created to be a swe
What number is 110% of 17?
contact a research and determine if pepsi and coca cola are duopoly​
Factory made chocolate chip cookies have a mean weight of 56 grams. The weight is normally distributed and for quality control, the standard deviation is 5 gram