Homework Answers
1.
False
Increase in the tax rate, will have the lower effect than that of the decrease in government spending and it is due to the difference in the size of multipliers. Increase in tax rate makes impact with taxation multiplier and decrease in government spending makes impact with spending multiplier. Here, spending multiplier is bigger than the taxation multiplier.
Taxation multiplier has relatively lower size, because of the marginal propensity to consume (MPC) affecting the consumption behavior.
Taxation Multiplier = - MPC*(1/(1-MPC))
Or
Taxation Multiplier = - MPC*spending multiplier
Above equation shows that taxation multiplier is the discounted value of spending multiplier by MPC.
Add Answer to:
Part A: True/False/Uncertain Questions Indicate whether each of the following statements is true, false or uncertain...
TRUE-FALSE-UNCERTAIN For each of the following claims, indicate whether it is true or false, or whether...
TRUE-FALSE-UNCERTAIN For each of the following claims, indicate whether it is true or false, or whether it could be either one, depending on circumstances. Then, explain why. Your grade will depend on your explanation. Try to make sure your explanation is not only correct but thorough. In particular, if a statement is false for more than one reason, discuss all those reasons (even though, logically, it takes just one contradiction to make the entire statement false). Doing this will prepare...
Short Questions Please indicate whether the following statements are True, False or Uncertain. Support your answer...
Short Questions Please indicate whether the following statements are True, False or Uncertain. Support your answer with an explanation (one to two sentences) or a diagram (75% of credit is based on your explanation!) 1. The government should only intervene in the economy when there are market failures. [2 marks 2. A utilitarian social welfare function implies that income redistribution from rich to poor will reduce social welfare. [2 marks] 3. A policy intervation will increase social welfare if and...
Explain why each of the following statements is True, False, or Uncertain according to economic principles....
Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. a. An increase in consumer incomes will result in an increase in the price of any consumer goods. b. If the unemployment rate decreases, we can be sure that the number of unemployed workers has decreased.
True, False, Uncertain State whether each of the following statements is true, false or uncertain. Explain and...
True, False, Uncertain State whether each of the following statements is true, false or uncertain. Explain and support your answer. There is not necessarily one right answer to these questions. All the credit is in the explanation (but you must state T, F, or U). The full cost of medical school includes mainly tuition, room, and board for the school. Uncompensated care in the U.S. is entirely subsidized by government programs, namely Medicare and Medicaid. In a DRG payment system, hospitals receive payment...
[48 marks-6 marks each] True, False, or Uncertain Explain why each of the following statements is...
[48 marks-6 marks each] True, False, or Uncertain Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important tin tiels ... TL A1-4. If a country has a standard production possibilities boundary (PPB) between national defense goods and "other goods", then an increase in defense spending means that the opportunity cost of "other goods" will rise A1-5....
Please indicate whether the following statements are True, False or Uncertain. Support your answer with an...
Please indicate whether the following statements are True, False or Uncertain. Support your answer with an explanation (one to two sentences) or a diagram. If the benefits of a project exceed its cost, then realizing this project will be a Pareto improvement?
Indicate whether the following station is True, False, or Uncertain. Provide an explanation. [True/False/Uncertain] If fixed...
Indicate whether the following station is True, False, or Uncertain. Provide an explanation. [True/False/Uncertain] If fixed effects model and random effects model give very different estimates, then the estimate from the random effects model must be inconsistent.
For each of the following statements, indicate whether it is true, false, or uncertain and EXPLAIN...
For each of the following statements, indicate whether it is true, false, or uncertain and EXPLAIN WHY. a. In the long-run the typical monopolistically competitive firm earns no economic profit and that indicates that the firm is economically (productively) efficient b. Monopolists have complete pricing freedom as they seek to maximize profits. c. In the short-run, if price drops below the average total cost, the perfectly competitive firm must shut down immediately.
Indicate whether you consider each of the following statements to be true, false or uncertain, and...
Indicate whether you consider each of the following statements
to be true, false or uncertain, and then explain your answers
1. [ 8 points) Gross National Product (GNP) is higher than Gross Domestic Product (GDP) for an economy. 2. [ 8 points] An increase in the price level (such as GDP price index) will shift the IS curve to the right. 3. [ 8 points] Monetary policy is more effective when the LM curve is relatively steeper. 4. [ 8...
Evaluate whether the following statements are True, False, or Uncertain. Explain your answer. You MUST provide...
Evaluate whether the following statements are True, False, or Uncertain. Explain your answer. You MUST provide an explanation to receive ANY marks for these questions! Moral hazard is a term used to describe the phenomenon under which the uniformed side of a deal gets exactly the wrong people trading with it.
TRUE-FALSE-UNCERTAIN For each of the following claims, indicate whether it is true or false, or whether it could be either one, depending on circumstances. Then, explain why. Your grade will depend on your explanation. Try to make sure your explanation is not only correct but thorough. In particular, if a statement is false for more than one reason, discuss all those reasons (even though, logically, it takes just one contradiction to make the entire statement false). Doing this will prepare...
Short Questions Please indicate whether the following statements are True, False or Uncertain. Support your answer with an explanation (one to two sentences) or a diagram (75% of credit is based on your explanation!) 1. The government should only intervene in the economy when there are market failures. [2 marks 2. A utilitarian social welfare function implies that income redistribution from rich to poor will reduce social welfare. [2 marks] 3. A policy intervation will increase social welfare if and...
[48 marks-6 marks each] True, False, or Uncertain Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important tin tiels ... TL A1-4. If a country has a standard production possibilities boundary (PPB) between national defense goods and "other goods", then an increase in defense spending means that the opportunity cost of "other goods" will rise A1-5....
Indicate whether you consider each of the following statements
to be true, false or uncertain, and then explain your answers
1. [ 8 points) Gross National Product (GNP) is higher than Gross Domestic Product (GDP) for an economy. 2. [ 8 points] An increase in the price level (such as GDP price index) will shift the IS curve to the right. 3. [ 8 points] Monetary policy is more effective when the LM curve is relatively steeper. 4. [ 8...
Most questions answered within 3 hours.
-
The
following items are taken from the annual financial statements of
Opco Company at December 31,...
asked 24 seconds ago -
Write a c++ program that shows the 10 employees record which is
not allowed to be...
asked 3 minutes ago -
The team of psychologists suggested that the type of instruction
should match with...?
asked 4 minutes ago -
Prepare a MARIE program to encode your full name using Unicode /
ASCII characters. You should...
asked 9 minutes ago -
To make bond purchases, the Fed gets the money __________.
Select the correct answer below:
exclusively...
asked 4 minutes ago -
Three masses of mass M=1.2kg are initially located at
positions:
r1→=4.0m i+2.8m j −4.4mk
r2→=5.4m i+1.0m...
asked 30 minutes ago -
List and briefly describe the three types of thermoelectric
sensors.
asked 30 minutes ago -
A bond has a $1,000 par value, 20 years to maturity and a 5%
annual coupon...
asked 31 minutes ago -
The three key cash-related activities of a firm are
operational activities, non-current activities and financing
activities....
asked 4 hours ago -
what statement accurately depicts the similarities in
requirements between payroll and human resources function
asked 6 hours ago -
Calculate the volume integral of the function T=z^2 over the
tetrahedron with corners (0,0,0), (1,0,0), (0,1,0),...
asked 7 hours ago -
I propose to you a game. You roll 2 dice. If the sum of the
numbers...
asked 8 hours ago