--%>
Assignment Help - homework help

State the relationship between MPC and multiplier

State the relationship between MPC and multiplier?

Answer: The value of multiplier differs directly with MPC.

 K=1/1 - MPC.

   Related Questions in Microeconomics

  • Q : Reason why giant corporations dominate

    John Kenneth Galbraith refuses theories which suppose profit maximization in competitive markets. According to him, the big corporations dominate the economic activity as: (1) Corporate managers look for maximum gains for stockholders. (2) Government policies are mani

    		•
  • Q : Estimate minimum average costs

    Robomatic Corporation could attain minimum average costs for RoboMaids when this produced: (1) 4,000 robots per month. (2) 6,000 robots per month. (3) 8,000 robots per month. (4) 10,000 robots per month. (5) 12,000 robots per month.

    Q : Discounted present value of future net

    A fundamental principle of finance is that the value of any of investment is: (w) the discounted present value of all future net cash flows expected by the investment. (x) negatively related to the future net cash flows generated from the investment. (y) the sum of al

    		•
  • Q : What is the meaning of ex-ante savings

    Meaning of ex-ante savings: Ex-ante savings are expected savings or planned savings.

    		•
  • Q : Labor Productivity The American workers

    The American workers tend to be much productive than their counterparts in the South America or Asia in part as they have: (i) Superior natural genetic endowments. (ii) Access to the better sports programming, that promotes the team-work. (iii) More capital to work wi

    		•
  • Q : Deter entry from potential competitors

    A firm along with important market power which builds an additional plant to increase excess capacity may be trying to as: (w) ignore a depletion of inventory. (x) deter entry from potential competitors. (y) increase demand and thus raise price and pr

    		•
  • Q : Determine price when quantity demand

    If the demand for a good is price elastic, in that case the percentage change in quantity demanded into response to a specified change within price is: (1) greater than the percentage change in price. (2) positively related to the cha

    		•
  • Q : Human Capital-General Training The

    The knowledge regarding local trees and shrubs which Morgan learns as working as an apprentice landscaper in suburbs of a big city is an illustration of the advantages from: (i) Dirty work. (ii) Dues-paying. (iii) General training. (iv) High-skilled employment. (v) Sp

    		•
  • Q : Contribution Standard The concept that

    The concept that people must have income in proportion to their productivity is termed as the: (1) equality standard of distribution. (2) productivity standard of distribution. (3) needs standard of distribution. (4) utility standard

    		•
  • Q : Purely competition on the average This

    This purely competitive brickyard as in below graph on the average experiences an: (w) economic profit of about $135 per day. (x) economic loss of roughly $150 per day. (y) accounting profit of less than $100 per day. (z) accounting loss of more than

    		•