7)
Right Answer: (D)
Import constitutes the leakages in multiplier process. Thus, it will retard the growth process of the economy.
8)
Answer: (A)
Under the circular flow, there must be spending to motivate producers to produce more. Thus, government spending would drive up growth rates in the economy.
Answer for both please! Question 7 1 pts Which of the following would potentially cause the...
Answer for both please!
Question 5 1 pts Using the circular flow, "crowding out" refers to When imports are greater than exports When government runs a surplus When government borrows money When government raises taxes Question 6 1 pts Using the circular flow, if government spending exceeds the amount of taxation (ie a deficit), which of the following is true Leakages exceed injections The government is trying to reduce growth The economy will shrink Injections exceed leakages
Which of the following are leakages from the circular flow of income? Group of answer choices Savings, taxes, and imports Investment, government purchases, and exports Investment, taxes and bonds Imports, wages and taxes
Answer for both please!
Question 9 1 pts If GDP was growing at 3.5%, we would consider that the economy is in a period of expansion in a recession has high unemployment Question 10 1 pts As described in class, which of the following had the biggest impact on the growth of GDP in the most recent quarter of data. Fixed investment Imports Consumption Government
1. The expanded circular-flow diagram Aa Aa The diagram below shows an expansive circular-flow diagram for the U.S. economy, with arrows pointing in the direction that money flows. To facilitate reference, letter labels have been placed on certain arrows of the diagram Government purchases of goods and services Government borrowing Government Taxes Government transfers Private savings Households Wages, profit, interest, Consumer spending rent Markets for goods and services Factor markets Financial markets Gross Wages, profit, interest, rent domestic Borrowing and...
Asked the professor and he told me both of #3and #5 are
correct. I can understand #3 but may I know why #5is also
correct?
Question 4 0 1 point Which of the following conditions must be satisfied in a closed economy? 1) Private saving equals investment. 2) There is no government spending or taxes. 3) Exports equal imports. 4) Government spending equals taxes. 5) Total saving equals investment.
I need a step by step solution of the following problem;
(Figure 7-2: Expanded Circular-Flow Model) Government purchases of goods and services = $200 Government borrowing = $70 Government $150 = Taxes Government transfers = $20 Private savings = $170 Consumer spending = $700 Households Wages, profit, interest, rent = $1,000 Markets for goods and services Factor markets Financial markets Gross domestic product Wages, profit, interest, rent - $1,000 Borrowing and stock issues by firms = $120 Firms Investment spending...
Figure 7-1: Circular-Flow Model: Use the following to answer questions 6-7: Wages, dividends, interest rent = $500 Wages, dividends, interest rent = $500 Factor markets Firms Households Consumer spending - $400 Taxes = $100 Goods and services markets Imports = $30 Government Government purchases of Exports goods and - $30 services = $100 Rest of world 6. (Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. If the circular- flow model is in equilibrium (the sum of money flowing into...
Question 8 0.9 pts For this problem think about the goods market. Suppose the consumption equation is represented by the following: C 200 0.75YD (where YD is disposable income), that investment is fixed ), and that government expenditures and taxes are determined exogenously. Suppose the economy is currently in equilibrium, but the government decides that it wants to achieve two goals: lead the economy to more output, and keep the government deficit at the current level. To achieve this, the...
Needs Graph for this question In the context of the national savings and investment identity, briefly describe the main sources for both the supply of and demand for capital in the U.S. economy. There are two main sources for the supply of capital in the U.S. economy: saving by individuals and firms, called S, and the inflow of financial capital from foreign investors, which is equal to the trade deficit M – X, or imports minus exports. There are two...
Please give a short answer to why what option is correct.
Thanks
7. Suppose there are two countries that are identical in every way with the following excep- tion. Country A is pursuing a fixed exchange rate regime and country B is pursuing a flexible exchange rate regime. Suppose taxes are increased in both countries by the same amount. Given this information, we know that A. the change in output in A will be greater than in B B. the...