# Economics Assignment | Custom Assignment Help

#### 1. Assume that the marginal propensity to consume is equal to 0.85. If the government increased spending by \$Z, and the real GDP increased by \$5000, what is the value of Z?

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A)\$750

B)\$1000

C)\$900

D)\$800

2.Calculate the multiplier if the marginal propensity to consume (MPC) is equal to 0.99.

A)10000

B)1000

C)500

D)100

3. Suppose the government increases spending by \$100, as a result, real GDP will:

A)increase by less than \$100.

B)increase by more than \$100.

C)increase by \$ 100.

D)none of the above.

4. If the marginal propensity to consume (MPC) is equal to  0.74, then the marginal propensity to save (MPS) is equal to:

A)0.25

B)0.26

C)0.2

D)0.1

5. Suppose the government increased spending by \$100, and as a result real GDP increased by \$2000. Calculate the marginal propensity to consume (MPC).

A)0.95.

B)0.9.

C)0.8.

D)0.7

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