Question

Problem 12-09 (algo) The CARES Act of 2020 increased disposable income by $600 billion. If consumers spent $460 billion of those income transfers immediately. Instructions: In part a, round your response to two decimal places. In part b, round your response to the nearest whole number. a. what was the MPC? 0.77 b. how much stimulus would those income transfers ultimately provide? 462

          Problem 12-09 (algo)
The CARES Act of 2020 increased disposable income by $600 billion. If consumers spent $460 billion of those income transfers immediately.
Instructions: In part a, round your response to two decimal places. In part b, round your response to the nearest whole number.
a. what was the MPC?
0.77
b. how much stimulus would those income transfers ultimately provide?
462

Problem 12-09 (algo)
The CARES Act of 2020 increased disposable income by 600 billion. If consumers spent460 billion of those income transfers immediately.
Instructions: In part a, round your response to two decimal places. In part b, round your response to the nearest whole number.
a. what was the MPC?
0.77
b. how much stimulus would those income transfers ultimately provide?
462

Added by Jordi H.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Lottie Adams

08/25/2023

Step 1

We can calculate it as follows: MPC = Change in Consumption / Change in Disposable Income In this case, we know that consumers spent $460 billion out of the $600 billion increase in disposable income. Show more…

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The CARES Act of 2020 increased disposable income by $600 billion. If consumers spent $460 billion of those income transfers, instructions in part a round your response to two decimal places. In part b round your response to the nearest whole number. a. what was the MPC? 0.77 b. how much stimulus would those income transfers ultimately provide? $ 462.