The IS curve shifts when any of the following economic variables change except: A. the interest...
The IS curve shifts when any of the following economic variables change except: A. the interest rate. B. government spending. C. tax rates. D. the marginal propensity to consume.
Homework Answers
The IS curve shifts when any of the following economic variable change except the interest rate.
Here interest rate is constant.
So option A is the correct statement.
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The IS curve shifts when any of the following economic variables
change except: A. the interest...
10. In the Keynesian Cross analysis, if the consumption function is given by C = 100...
10. In the Keynesian Cross analysis, if the consumption function is given by C = 100 + 0.6(Y − T) and planned investment is 100, G = T = 100, then equilibrium Y is: a) 350 b) 400 c) 600 d) 750 11. Assume that the money demand function is L(r) = 2200 − 200r, where r is the interest rate in percent. The money supply is 2000 and the price level is 2. The equilibrium interest rate is percent....
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
Which of the following shifts aggregate demand to the left?
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Q60. If the government increases spending and raises taxes by just enough to finance this increase...
Q60. If the government increases spending and raises taxes by just enough to finance this increase it will-------------------- a. Reduce output b. increase the MPC c. leave output unchanged d. increase output Q61. Starting from a balanced budget, for a given tax rate, an increase in income will cause the government budget to a. Remain unchanged b. move into surplus c. move into deficit d. both b and c Q62. For given government spending and taxation, the government budget deficit...
Calculate the resulting change in GDP for each of the following MPCs when the government decreases...
Calculate the resulting change in GDP for each of the following MPCs when the government decreases taxes by $225 billion (change in taxes equals -$225 billion) Instructions: Round your answers to one decimal place. a. The marginal propensity to consume (MPC) = 0.2. The change in GDP is $ O b illion. b. The marginal propensity to consume (MPC) = 0.5. The change in GDP is $ billion. C. The marginal propensity to consume (MPC) = 0.8. The change in...
Which of the following shifts the demand for money curve? i. change in the nominal interest...
Which of the following shifts the demand for money curve? i. change in the nominal interest rate ii. change in real GDP iii. change in the price level O A. ii and ii O B. ii only O c. i only O D. iii only O E. i, ii, and i
The following table shows alternative hypothetical economies and the relevant values for the marginal propensity to...
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All of the following actions by the federal government would be effective in combating an economic...
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In Econoland, let the amount of consumption that is independent of income is equal to 80;...
In Econoland, let the amount of consumption that is independent of income is equal to 80; all expenditures are in billion US dollars. Investment in the economy is autonomous at 600. From any dollar change in national income, households use up ¾ of it to spend on consumption. Government spending is fixed at 300, and the tax rate is known to be 5%. The correct statement based on this case is Group of answer choices a. multiplier is 4 b....
When people expect interest rates to fall in the future, the _____ curve for bonds shifts...
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the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
Calculate the resulting change in GDP for each of the following MPCs when the government decreases taxes by $225 billion (change in taxes equals -$225 billion) Instructions: Round your answers to one decimal place. a. The marginal propensity to consume (MPC) = 0.2. The change in GDP is $ O b illion. b. The marginal propensity to consume (MPC) = 0.5. The change in GDP is $ billion. C. The marginal propensity to consume (MPC) = 0.8. The change in...
Which of the following shifts the demand for money curve? i. change in the nominal interest rate ii. change in real GDP iii. change in the price level O A. ii and ii O B. ii only O c. i only O D. iii only O E. i, ii, and i
The following table shows alternative hypothetical economies and the relevant values for the marginal propensity to consume out of disposable income (MPC), the net tax rate (t), and the marginal propensity to import (m). a. Recall that z, the marginal propensity to spend out of national income, is given by the simple expression Z-MPC(1-1)-m. By using this expression, compute z and the simple multiplier for each of the economies and fill in the table. (Round your response to two decimal...
All of the following actions by the federal government would be effective in combating an economic recession EXCEPT: (A) Increasing individual income tax rates for all citizens (B) The Federal Reserve lowers interest rates (C) Additional government projects and spending on infrastructure (D) Additional borrowing by the federal government ws
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