1. Multipliers Quiz Review APS, APC MPS, MPC Government/Investment Spending Taxes GDPr Calculations

2. What is the APC and APS for this chart? .APC .50, APS .50 DI
Consumption
Savings
APC
APS
2000
1500
500
What is the APC and APS for this chart?
.APC .50, APS .50
APC .75, APS .75
APC .80, APS .20
APC .75, APS .25 NA

3. What is the APC and APS for this chart? .APC .50, APS .50 DI
Consumption
Savings
APC
APS
2000
1500
500
What is the APC and APS for this chart?
.APC .50, APS .50
APC .75, APS .75
APC .80, APS .20
APC .75, APS .25 NA

4. --------------------DI
Consumption
Savings
MPC
MPS
2000
1500
500
3000
1000
What is the MPC and MPS rate?
MPC .50, MPS .50
MPC .75, MPS .75
MPC . 80, MPS . 20
MPC .75, MPS .25 NA

5. --------------------DI
Consumption
Savings
MPC
MPS
2000
1500
500
3000
1000
What is the MPC and MPS rate?
MPC .50, MPS .50
MPC .75, MPS .75
MPC . 80, MPS . 20
MPC .75, MPS .25 NA
Why are there dashed lines in row 1?

6. What is the Government Spending/Investment Multiplier if the MPC = .854
5.5
-5.5
6.6
3.4

7. What is the Government Spending/Investment Multiplier if the MPC = .854
5.5
-5.5
6.6
3.4

8. What is the Tax Multiplier (for a tax increase), if MPC = .85?
4.6
5.6
-5.6
6.6
3.4

9. What is the Tax Multiplier (for a tax increase), if MPC = .85?
4.6
5.6
-5.6
6.6
3.4
What if it was a tax decrease?

10. What is the value of the Balance Budget?
WHY?????? 1 -1 2 -2
3.14

11. What is the value of the Balance Budget?
WHY?????? 1 -1 2 -2
3.14

12. If Toyota builds another plant in San Antonio at $100M, and the MPC is
If Toyota builds another plant in San Antonio at $100M, and the MPC is .80, how much will GDP be affected by?
$200M
$350M
$500M
-$200M
$80M

13. If Toyota builds another plant in San Antonio at $100M, and the MPC is
If Toyota builds another plant in San Antonio at $100M, and the MPC is .80, how much will GDP be affected by?
$200M
$350M
$500M
-$200M
$80M

14. If there is a Tax Increase of $50M and MPC is
If there is a Tax Increase of $50M and MPC is .75, how much will GDP be affected by?
-$150M
$350M
$500M
-$200M
-$80M

15. If there is a Tax Increase of $50M and MPC is
If there is a Tax Increase of $50M and MPC is .75, how much will GDP be affected by?
-$150M
$350M
$500M
-$200M
-$80M

16. If there is a Recessionary Gap of $200 Billion and MPC is
If there is a Recessionary Gap of $200 Billion and MPC is .80, how much money should the government spend to close this gap?
$20B
$35B
$40B
-$20B
$80B

17. If there is a Recessionary Gap of $200 Billion and MPC is
If there is a Recessionary Gap of $200 Billion and MPC is .80, how much money should the government spend to close this gap?
$20B
$35B
$40B
-$20B
$80B

18. If there is a Recessionary Gap of $200 Billion and MPC is
If there is a Recessionary Gap of $200 Billion and MPC is .80, how much money should the government lower taxes by to close this gap?
$30B
$35B
$40B
$45B
$50B

19. If there is a Recessionary Gap of $200 Billion and MPC is
If there is a Recessionary Gap of $200 Billion and MPC is .80, how much money should the government lower taxes by to close this gap?
$30B
$35B
$40B
$45B
$50B