Homework Answers
A small marginal propensity to import and large marginal propensity to consume will make the spending multiplier larger.
Answer-3
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Question 5 (1 point) v Saved Which of the following would make the spending multiplier larger?...
1. If the MPS = 0.2, then the multiplier equals: * 4 5 9 10 2....
1. If the MPS = 0.2, then the multiplier equals: * 4 5 9 10 2. Suppose that a financial crisis decreases investment spending by $200 billion and the marginal propensity to consume is 0.75. Assuming no taxes and no trade, real GDP will _____ by _____. decrease; $500 billion decrease; $200 billion decrease; $800 billion increase; $400 billion 3. An increase in the marginal propensity to consume: increases the multiplier. shifts the autonomous investment line upward. decreases the multiplier....
< Question 4 of 15 > The multiplier (expenditure multiplier) is the ratio between which two...
< Question 4 of 15 > The multiplier (expenditure multiplier) is the ratio between which two measures?! marginal propensity to consume AND the size of an autonomous change in nominal GDP O marginal propensity to save AND marginal propensity to consume total change in real GDP due to an autonomous change in aggregate spending AND the size of the autonomous change in aggregate spending O total change in nominal GDP caused by an autonomous change in aggregate spending AND the...
Question 78 (1 point) Calculate the impact of a $96 billion increase in government spending on...
Question 78 (1 point) Calculate the impact of a $96 billion increase in government spending on equilibrium GDP when the marginal propensity to consume is 0.8, the marginal tax rate is 15% and the marginal propensity to import is 0.15. 1) 30.72 2) 204.26 3) 274.29 O4) -0.10 5) 480 Question 79 (1 point)
Suppose economists observe that an increase in government spending of $5 billion raises the real aggregate...
Suppose economists observe that an increase in government spending of $5 billion raises the real aggregate output level by $20 billion. (a) In the absence of the crowding out effect, what would the numerical value of marginal 1. propensity to consume (MPC)? (b) Now suppose the crowding-out effect also comes to play.Should the new numerical value of marginal propensity to consume (MPC) be larger or smaller than that of your answer in part (a)? Explain. (Hint: the multiplier effect and...
Question 13 (1 point) Saved Which of the following would cause a reduction in exports? O 1) an increase in foreign outp...
Question 13 (1 point) Saved Which of the following would cause a reduction in exports? O 1) an increase in foreign output 2) a real depreciation of the domestic exchange rate O 3) a decrease in domestic output 4) a real appreciation of the domestic exchange rate 5) an increase in domestic output
Question 7 1 pts The equilibrium level of real GDP is $1,000, the target level of...
Question 7 1 pts The equilibrium level of real GDP is $1,000, the target level of real GDP is $1,250, and the marginal propensity to consume (MPC) is 0.80. The target can be reached if government spending is: increased by $100 billion increased by $50 billion increased by $250 billion. O held constant. Question 8 1 pts The tax multiplier equals 1 spending multiplier True False
could abyone help me answering these questions please! Incorrect Question 3 0/1.5 pts The aggregate demand...
could
abyone help me answering these questions please!
Incorrect Question 3 0/1.5 pts The aggregate demand of an open economy is given by the after-tax domestic consumption C, the investment (which depends on the interest rater), the government spending G and net exports X - M: AD = C+I+G+X-M=co + c (1 – t) T+I(r) + G + X - my Co is autonomous consumption, c, is the marginal propensity to consume, and m is the marginal propensity to import....
Question 1 (1 point) An increase in government spending will shift the aggregate demand curve to...
Question 1 (1 point) An increase in government spending will shift the aggregate demand curve to the left. True False Question 2 (1 point) When federal government spending exceeds tax revenues, the federal government runs a budget surplus True False Question 3 (1 point) Taxation and government spending are examples of fiscal policy tools used to stabilize an economy. True False Question 4 (1 point) Gross domestic product calculations count only final goods and services because: a one cannot calculate...
please do the part b of the question 3. You are given the following information for Country Z C=Co + ci(1-t)Y INI G=G N...
please do the part b of the question
3. You are given the following information for Country Z C=Co + ci(1-t)Y INI G=G NX = X - my Country Z Dec 2018 Autonomous Consumption $20 trillion | Marginal Propensity to Consume 0.9 Marginal Tax Rate 0.25 Investment $200 trillion Government $200 trillion Exports $25 trillion Marginal Propensity to Import 0.07 April 2019 $20 trillion 0.9 0.25 $199 trillion $200 trillion $25 trillion 0.07 a) How much does the government of...
Question 10 (1 point) v Saved Which of the following are a regular part of a...
Question 10 (1 point) v Saved Which of the following are a regular part of a lobbyist's job? a) Testifying at hearings b) Educating members O c) Commenting on rulemaking O d) all of the above T Question 11 (1 point) When iron triangles develop around a single issue, the relationship is often called: a) a social network Ob) a political network c) an issue network d) a revolving network
< Question 4 of 15 > The multiplier (expenditure multiplier) is the ratio between which two measures?! marginal propensity to consume AND the size of an autonomous change in nominal GDP O marginal propensity to save AND marginal propensity to consume total change in real GDP due to an autonomous change in aggregate spending AND the size of the autonomous change in aggregate spending O total change in nominal GDP caused by an autonomous change in aggregate spending AND the...
Question 78 (1 point) Calculate the impact of a $96 billion increase in government spending on equilibrium GDP when the marginal propensity to consume is 0.8, the marginal tax rate is 15% and the marginal propensity to import is 0.15. 1) 30.72 2) 204.26 3) 274.29 O4) -0.10 5) 480 Question 79 (1 point)
Suppose economists observe that an increase in government spending of $5 billion raises the real aggregate output level by $20 billion. (a) In the absence of the crowding out effect, what would the numerical value of marginal 1. propensity to consume (MPC)? (b) Now suppose the crowding-out effect also comes to play.Should the new numerical value of marginal propensity to consume (MPC) be larger or smaller than that of your answer in part (a)? Explain. (Hint: the multiplier effect and...
Question 13 (1 point) Saved Which of the following would cause a reduction in exports? O 1) an increase in foreign output 2) a real depreciation of the domestic exchange rate O 3) a decrease in domestic output 4) a real appreciation of the domestic exchange rate 5) an increase in domestic output
Question 7 1 pts The equilibrium level of real GDP is $1,000, the target level of real GDP is $1,250, and the marginal propensity to consume (MPC) is 0.80. The target can be reached if government spending is: increased by $100 billion increased by $50 billion increased by $250 billion. O held constant. Question 8 1 pts The tax multiplier equals 1 spending multiplier True False
could
abyone help me answering these questions please!
Incorrect Question 3 0/1.5 pts The aggregate demand of an open economy is given by the after-tax domestic consumption C, the investment (which depends on the interest rater), the government spending G and net exports X - M: AD = C+I+G+X-M=co + c (1 – t) T+I(r) + G + X - my Co is autonomous consumption, c, is the marginal propensity to consume, and m is the marginal propensity to import....
please do the part b of the question
3. You are given the following information for Country Z C=Co + ci(1-t)Y INI G=G NX = X - my Country Z Dec 2018 Autonomous Consumption $20 trillion | Marginal Propensity to Consume 0.9 Marginal Tax Rate 0.25 Investment $200 trillion Government $200 trillion Exports $25 trillion Marginal Propensity to Import 0.07 April 2019 $20 trillion 0.9 0.25 $199 trillion $200 trillion $25 trillion 0.07 a) How much does the government of...
Question 10 (1 point) v Saved Which of the following are a regular part of a lobbyist's job? a) Testifying at hearings b) Educating members O c) Commenting on rulemaking O d) all of the above T Question 11 (1 point) When iron triangles develop around a single issue, the relationship is often called: a) a social network Ob) a political network c) an issue network d) a revolving network
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