Homework Answers
Answer : The answer is option B.
There exists a positive relationship between multiplier and MPC. Hence if MPC fall then the multiplier will decrease. Therefore, option B is correct.
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What would happen to the multiplier if the MPC were to fall? The multiplier would stay...
2.This question has to do with calculating the multiplier. Please answer questions 2a through 2c. 2a....
2.This question has to do with calculating the multiplier. Please answer questions 2a through 2c. 2a. Define and write the formula for the multiplier. 2b. Compute the multiplier if the MPC-0.80. Interpret the multiplier you just calculated. 2c. Suppose President Obama's economic advisor tells him that the MPC is now 0.50 because stock prices have fallen in the stock market making investors less wealthy now than before stock prices fell in the stock market. Calculate the new multiplier. Interpret the...
What would happen to the risk premiums of municipal bonds if the federal government guarantees today...
What would happen to the risk premiums of municipal bonds if the federal government guarantees today that it will pay creditors if municipal governments default on their payments O A. Risk premium on municipal bonds will decrease O B. Risk premium on municipal bonds will stay the same. OC. Risk premium on municipal bonds will increase. OD. There is not enough information to tell. Do you think that it will then make sense for municipal bonds to be exempt from...
help? if possible not cursive. please What will the multiplier be when the MPC is: place...
help? if possible not cursive. please
What will the multiplier be when the MPC is: place answer next to MPC MPC-.9 (do not need to show work) 4. a. s. a. Whst change in Nominal GDP (constant price level) will resultif firms increase their level of investment () by $8 billion and the MPC is.757 Change in Nominal GDP- Show answer and work here: b. If the MPC is.80? Change in GDP Show answer and work here: 6. Indicate what...
Be sure to answer all five parts of this question. What would happen to the U.S....
Be sure to answer all five parts of this question. What would happen to the U.S. current account in each of the following situations? Choose either fall (become more negative or smaller), rise (become more positive or larger), no change, or uncertain. a) If the real dollar exchange rate appreciates, the U.S. current account will A. Rise B. Fall C. No change D. Uncertain b) If U.S. disposable income falls, the U.S. current account will A. Rise B. Fall C....
Two like charges are separated by some distance. Describe quantitatively what will happen to the force...
Two like charges are separated by some distance. Describe quantitatively what will happen to the force exerted by one charge on the other if one of the charges is replaced by a charge of the same magnitude but opposite sign. The force will become: the same magnitude but becomes attracting. not enough information to tell what will happen. twice as large. the same - no change at all. the same magnitude but becomes repelling.
1. Suppose the U.S economy enters a recession and incomes fall. What will happen to the...
1. Suppose the U.S economy enters a recession and incomes fall. What will happen to the equilibrium prices and quantities of inferior goods? If price stays the same would that be equilibrium? Why or why not? What will eventually happen in th3 market? What happened to equilibrium price and quantity? Which quantity is affected and how do you know? Would your answer be the same if you were discussing normal goods? Explain using supply/demand graphs. 2. Draw a graph showing...
D Question 26 1 pts What will happen to the equilibrium price of new textbooks if...
D Question 26 1 pts What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties and fewer used textbooks are sold? O Price will rise. Price will stay exactly the same. O The price change will be ambiguous. O Price will fall.
What is the spending multiplier if the MPC is 62%? 1.61 .62 2.63 Unlike the neoclassical...
What is the spending multiplier if the MPC is 62%? 1.61 .62 2.63 Unlike the neoclassical approach to the economy, the Keynesian approach focuses on sticky prices and aggregate demand. This focus is advantageous for understanding the reason cyclical unemployment and recessions occur, as these fluctuations take place in the ________ -run. long gap short What is true about the expenditure multiplier? GDP does not change proportionally. GDP changes when the aggregate expenditure changes. A larger change in expenditure causes...
Intuitively, what would happen to Bnet if distance d is increased and all other quantities remain...
Intuitively, what would happen to Bnet if distance d is increased and all other quantities remain the same? a) it would increase b) it would decrease c) it would stay the same Please explain why, thanks
1- If the income tax exemption on municipal bonds were abolished, show what would happen to...
1- If the income tax exemption on municipal bonds were abolished, show what would happen to the interest rates on these bonds. Show and explain the effects would the change have on interest rates on U.S. Treasury securities?(draw graphs) 2-Suppose you are in charge of the financial department of your company and you have to decide whether to borrow short or long term. Checking the news, you realize that the government is about to engage in a major infrastructure plan...
2.This question has to do with calculating the multiplier. Please answer questions 2a through 2c. 2a. Define and write the formula for the multiplier. 2b. Compute the multiplier if the MPC-0.80. Interpret the multiplier you just calculated. 2c. Suppose President Obama's economic advisor tells him that the MPC is now 0.50 because stock prices have fallen in the stock market making investors less wealthy now than before stock prices fell in the stock market. Calculate the new multiplier. Interpret the...
What would happen to the risk premiums of municipal bonds if the federal government guarantees today that it will pay creditors if municipal governments default on their payments O A. Risk premium on municipal bonds will decrease O B. Risk premium on municipal bonds will stay the same. OC. Risk premium on municipal bonds will increase. OD. There is not enough information to tell. Do you think that it will then make sense for municipal bonds to be exempt from...
help? if possible not cursive. please
What will the multiplier be when the MPC is: place answer next to MPC MPC-.9 (do not need to show work) 4. a. s. a. Whst change in Nominal GDP (constant price level) will resultif firms increase their level of investment () by $8 billion and the MPC is.757 Change in Nominal GDP- Show answer and work here: b. If the MPC is.80? Change in GDP Show answer and work here: 6. Indicate what...
D Question 26 1 pts What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties and fewer used textbooks are sold? O Price will rise. Price will stay exactly the same. O The price change will be ambiguous. O Price will fall.
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