7. In a hypothetical aggregate expenditures (AE) model, the marginal propensity to consume is 0.80. Given...
7. In a hypothetical aggregate expenditures (AE) model, the marginal propensity to consume is 0.80. Given this information, what is the slope of the Consumption (C) line in this hypothetical AE model?
Homework Answers
The marginal propensity to consume is same as the slope of he consumption line. So, the value of the MPC would be 0.80.
Add Answer to:
7. In a hypothetical aggregate expenditures (AE) model, the
marginal propensity to consume is 0.80. Given...
Use the aggregate expenditures model and assume the marginal propensity to consume is 0.90. An increase...
Use the aggregate expenditures model and assume the marginal propensity to consume is 0.90. An increase in government spending of $1 billion would result in an increase in GDP of?
Here are some facts about the economy of Inferior. Marginal propensity to consume 3/5 marginal propensity...
Here are some facts about the economy of Inferior. Marginal propensity to consume 3/5 marginal propensity to import 0 autonomous consumption 4 exports 0 private investment 20 income tax rate 0 government expenditures 0 Income consumption investment government aggregate expenditures expenditures 0 10 20 30 40 50 60 70 80 90 What is equilibrium GDP?
Here are some facts about the economy of Inferior. Marginal propensity to consume 3/5 marginal propensity...
Here are some facts about the economy of Inferior. Marginal propensity to consume 3/5 marginal propensity to import 0 autonomous consumption 4 exports 0 private investment 20 income tax rate 0 government expenditures 0 Income consumption investment government aggregate expenditures expenditures 0 10 20 30 40 50 60 70 80 90 How much is consumption when income equals 10
1.) If the marginal propensity to consume is 0.75 and investment spending increases by $200 billion,...
1.) If the marginal propensity to consume is 0.75 and investment spending increases by $200 billion, equilibrium GDP will increase by____. $350 billion $150 billion $200 billion $266.7 billion $800 billion 2.) AE = 3000 + 0.75*RGDP. Given this equation for AE, find equilibrium GDP $1,000 $750 $12,000 $2,250 3.) The four components of aggregate planned expenditure are the real interest rate, disposable income, wealth, and expected future income the real interest rate, consumption expenditure, investment, and government expenditures consumption...
Assuming there is no trade, if the Marginal Propensity to Consume is 0.80 and the government...
Assuming there is no trade, if the Marginal Propensity to Consume is 0.80 and the government increases spending by $8 billion, by how much will output rise? Select one: a. By $24 billion b. By $40 billion c. By $48 billion d. By $52 billion e. By $60 billion
Currently, a government's budget is balanced. The marginal propensity to consume is 0.80. The government has...
Currently, a government's budget is balanced. The marginal propensity to consume is 0.80. The government has determined that each additional $10 Billion in new government debt it issues to finance a budget deficit pushes up the market interest rate by 0.1 percentage point. It has also determined that every 0.1 percentage point change in the market interest rate generates a change in investment expenditures equal to $2 Billion. Finally, the government knows that to close a recessionary gap and take...
Suppose the marginal propensity to consume is 0.8 and the tax rate is 0.25 and all...
Suppose the marginal propensity to consume is 0.8 and the tax rate is 0.25 and all other components of aggregate expenditures are determined outside the model. If the president wants to increase income by 500, her advisers would suggest that she increases government spending by: A. 50. O B. 100 C. 200 D. 250
11. Consider an economy with a marginal propensity to consume of 0.60. What would its marginal...
11. Consider an economy with a marginal propensity to consume of 0.60. What would its marginal propensity to save be? What would happen to consumption (give the direction and size of the effect) if income taxes (T) were to increase by 100, assuming that real aggregate income is unaffected? What would happen to private saving? To public saving? To national saving? Suppose, instead, that government purchases (G) increase by 100. Assuming that aggregate income is unaffected, what would happen to...
Real GDP, consumption, and the marginal propensity to consume (MPC) for five hypothetical countri...
Real GDP, consumption, and the marginal propensity to consume (MPC) for five hypothetical countries are shown in the table below. a. Enter the current level of saving in the appropriate column in the table. b. Now suppose that GDP increases by $20 billion in each of the five countries. What would be the new level level of saving in each country? Show your answers in the table below. Country Real GDP (Billions) Consumption (Billions) MPC Current Level of Saving (Billions)...
3. If the marginal propensity to consume is .9, and investment expenditures increase by $100 billion, what is the proje...
3. If the marginal propensity to consume is .9, and investment expenditures increase by $100 billion, what is the projected increase in GDP?
Suppose the marginal propensity to consume is 0.8 and the tax rate is 0.25 and all other components of aggregate expenditures are determined outside the model. If the president wants to increase income by 500, her advisers would suggest that she increases government spending by: A. 50. O B. 100 C. 200 D. 250
3. If the marginal propensity to consume is .9, and investment expenditures increase by $100 billion, what is the projected increase in GDP?
Most questions answered within 3 hours.
-
1. Choose the answer that is closest to the definition of a
significance level
a) If...
asked 1 hour ago -
When light is refracted, on what does the angle of refraction
depend? Select all that apply....
asked 1 hour ago -
A (726) g mass is hung on a spring. As a result the spring
stretches (16.5)...
asked 2 hours ago -
SOLUTION NOT NEEDED ONLY NEED THE ANSWERS, HOMEWORK IS DUE IN 30
MINUTES.
4)Which of the...
asked 2 hours ago -
You will select one card from a standard deck of 52 cards. What
is the probability...
asked 3 hours ago -
50% of the volume of a boat, sailing down the Mississippi (where
the water density ρ...
asked 3 hours ago -
Calculate how many moles of ions are in 1.4 L of 2.9 M KNO2
(aq). Remember...
asked 4 hours ago -
Experiment:
In the experiment: Mix together 74 g. (92 ml.) of n-butyl
alcohol and 120 g....
asked 4 hours ago -
This Python module will be menu driven
and use conditions to check user input in order...
asked 5 hours ago -
Tip Calculator App
For this project, you will create a tip calculator Android
app. The user...
asked 5 hours ago -
A first order chemical reaction has an energy of activation of
90.0 kJ/mol and a rate...
asked 7 hours ago -
Which statement is not correct?
Mutations change the sequence of nucleotides in DNA.
Mutations can be...
asked 9 hours ago