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No such multiplier is possible.78 decreased by 78 is 0, so the decimal multiplier would to be 0. 156 decreased by 78 is 78 so the multiplier is 0.5. 1000000 decreased by 78 is 999922 so the multiplier is 0.999922 and so on. A different multiplier in each case.
5
multiplier
1.58
Since MPC+MPS=1 Then MPS=1-0.5=0.5 Tax Multiplier= -(MPC/MPS)=-0.5/0.5= -1
3
1.33The answer is 1.33
Taxation Multiplier = - (MPC) / (1 - MPS) Where, MPC = marginal propensity to consume, and MPS = marginal propensity to save.
K= I/(1-MPC) MPC is a marginal propensity to consume I = investment
MPS =0.401 mpc = 0.509
100
you could do it two ways .If you have the MPC could divide it
The formula for this simple tax multiplier. (m[tax]), is: m[tax] = - MPC x 1 ---- MPS = - MPC ---- MPS Where MPC is the marginal propensity to consume and MPS is the marginal propensity to save. This formula is almost identical to that for the simple expenditures multiplier. The only difference is the inclusion of the negative marginal propensity to consume (- MPC). If, for example, the MPC is 0.75 (and the MPS is 0.25), then an autonomous $1 trillion change in taxes results in an opposite change in aggregate production of $3 trillion.
1/1-MPC or 1/MPS+MPT+MPM
MPC is the Marginal Propensity to Consume. You can find the MPC by taking the change in consumption divided by the change in disposable income. Likewise, MPS is the Marginal Propensity to Save. You can find the MPS by taking the change in savings divided by the change in disposable income. It is useful to know when you want to find out what the multiplier is. Multiplier = 1/MPS or 1/(1-MPC)
1/1-(mpc-mpm) mpc- marginal propensity to consume mpm- marginal propensity to import