Multipliers Lesson (New)

Multiple Choice

Stan gets $500 and spends $100. His MPC is _______________ and his MPS is _______________. (divide the amount spent by the original amount)

• MPC= 20%, MPS= 80%

• MPC= .80, MPS= .20

• MPC= 10%, MPS= 50%

• MPC= .50, MPS= .10

Multiple Choice

Zack gets $1,000 and saves $300. His MPC is _______________ and his MPS is _______________.

• MPC= 70%, MPS= 30%

• MPC= .30, MPS= .70

• MPC= 10%, MPS= 30%

• MPC= .20, MPS= .80

Multiple Choice

Dylan gets $20M and saves $5M. His MPC is _______________ and his MPS is _______________.

• MPC= .30, MPS= .70

• MPC= 75%, MPS= 25%

• MPC= .25, MPS= .75

• MPC= 20%, MPS= 5%

Multiple Select

In Theaville, their MPC is 50%. What is their Tax & Spending Multipliers? (select two)

• TxM= 1

• ExM= 2

• TxM= .1

• ExM= .2

• TxM= 2

Multiple Select

In Oliverland, their MPS is 25%. What is their Tax & Spending Multipliers? (select two)

• TxM= 3

• ExM= 4

• TxM= .3

• ExM= .4

• ExM= 3

Multiple Choice

The Gov’t increases spending by $1 million. Expenditure Multiplier is 10. Aggregate Demand increases by...

• $1O million

• $1 million

• $11 million

Multiple Choice

The Gov’t decreases spending by $10 million. The Expenditure Multiplier is 5. Gross Domestic Product decreases by

• $50 million
• $10 million
• $500 million

• $15 million
• $2 million

Multiple Choice

Gov’t cuts taxes by $2 M. The Tax Multiplier is 4. GDP (AD) increases by

• $8 million
• $4 million

• $6 million

• $2 million

Multiple Choice

Gov’t raises taxes by $1M. Tax Multiplier is 9.GDP (AD) DECREASES by

• $9 million
• $9 billion

• $9

• $1 million

Multiple Select

Remitopia wants its GDP to decrease by $90 million. Their current tax multiplier is 9. Spending multiplier is 10. How much should they change taxes & spending by? (Select two)

• Increase taxes by $9 million

• Increase taxes by $10 million

• Decrease spending by $10 million

• Decrease spending by $9 million

• Decrease spending by $900 million

Multiple Select

The United States wants its GDP to increase by $36 million. Their current MPC is 75%. How much should they change taxes & spending by? (Select two)

• Decrease taxes by $12 million

• Decrease taxes by $9 million

• Increase spending by $9 million

• Increase spending by $12 million

• Decrease taxes by $108 million