Can you help with is econ question? If the MPS is equal to 0.20, then an...
Can you help with is econ question?
If the MPS is equal to 0.20, then an increase in investment of $4 billion can produce an increase in equilibrium income of as much as $ _____billion.
Homework Answers
Investment multiplier = 1/1-MPC
1-MPC = MPS
= 1/MPS
= 1/0.20
= 4
Multiplier value is 4
Total increase in income =4*4
= $ 16 Billion.
Answer: $ 16 billion.
Add Answer to:
Can you help with is econ question?
If the MPS is equal to 0.20, then an...
please answer 7,8,9,10. thank you so much!!:)) SECTION In the simple Keynesian model with an MPC...
please answer 7,8,9,10. thank you so much!!:))
SECTION In the simple Keynesian model with an MPC equal Keynesian model with an MPC equal to 0.80, a S50 billion increase in investment spending leads to a maximum: $50 billion increase in equilibrium income. b. 580 billion increase in equilibrium income $250 billion increase in equilibrium income. d. $400 billion increase in equilibrium income S500 billion increase in equilibrium income. when $2.000 increase in income causes a $1,800 increase in consumption spending...
3. You are given the following MPC’s, for each one calculate (show work) the MPS and...
3. You are given the following MPC’s, for each one calculate (show work) the MPS and the Multiplier a. MPC = .80 B. MPC = .40 c. MPC = .67 D. MPC = .33 4. You are given the following MPS’s, for each one calculate (show work) the MPC and the Multiplier a. MPS = .50 B. MPS = .75 c. MPS = .30 D. MPS = .25 5. If the multiplier was equal to 2.50, explain what impact the...
Question 12 1 pts The fraction, or percentage, of total income that is consumed is called...
Question 12 1 pts The fraction, or percentage, of total income that is consumed is called the break-even income. consumption schedule. marginal propensity to consume. average propensity to consume. Question 14 1 pts The effect of a decline in taxes on the level of income will differ somewhat from an increase in government expenditures of the same amount because tax declines tend to be more expansionary households may not spend all of an increase in disposable income. the MPC that...
can someone help on setting and solving for a-c Problem Set 2 ENV ECON 147 DUE:...
can someone help on setting and solving for a-c
Problem Set 2 ENV ECON 147 DUE: Feb 26 11:59 PM There are four questions on this assignment. The first two questions are typical of the kind of questions I might ask on an exam. The last two question are more difficult. Feel free to come to office hours for help. Question 1: Bertrand Competition in theory) Two firms produce heterogeneous goods and compete in prious. The demand and cost functions...
1) Suppose consumption is $7,500 when income is $4,000 and the MPS equals 0.4. When income...
1) Suppose consumption is $7,500 when income is $4,000 and the MPS equals 0.4. When income increases to $6,000, consumption is a) $8,700. b) $8,300. c) $8,050. d) $9,500. 2) If Teena's consumption function is of the form [C = 200 + 0.75Y], her saving equals zero at an income level of Group of answer choices a) 800. b) 675. c) 150. d) 1,500. 3) The Tiny Tots Toy Company manufactures only sleds. In 2016 Tiny Tots manufactured 10,000 sleds,...
QUESTION 21 Suppose investment spending initially increases by $50 billion in an economy whose MPC is...
QUESTION 21 Suppose investment spending initially increases by $50 billion in an economy whose MPC is 2/3. By how much will this ultimately change real GDP? O A $75 billion OB. $50 billion OC $ 150 billion D. $ 200 billion QUESTION 22 Which of the following statements is FALSE? O A When income increases MPS is constant When income increases APS Increases C. When income increases MPC is increases D. When income increases APC decreases QUESTION 23 If the...
Econ Public Finance, please help! Question 1 (10 pts) A government is considering paving a highway...
Econ Public Finance, please help!
Question 1 (10 pts) A government is considering paving a highway with a newly developed "wear-proof" material. Paving the highway would cost $4 billion today, but it would save $400 million in maintenance costs for each of the next 10 years. Use the concept of present value to determine whether the project is worth undertaking if the government can borrow at an interest rate of 4%. Is it worth it if the interest rate is...
13. The reason for the multiplier effect is that a. one person's additional expenditure constitutes a...
13. The reason for the multiplier effect is that a. one person's additional expenditure constitutes a new source of income for another person, and this additional income leads to still more spending, and so on. b. changes in government spending typically deepen recessions or exacerbate inflationary conditions in the economy. c. businesses make decisions about investment projects based on anticipated profits. d. additional spending lowers the real interest rate and leads to further borrowing and spending by businesses. 14. If...
QUESTION 3: KEYNESIAN MODEL (7 POINTS) (You must show all steps of your calculations to get...
QUESTION 3: KEYNESIAN MODEL (7 POINTS)
(You must show all steps of your calculations to get credit
for each item of this question; otherwise, you will be deducted
marks)
ANSWER THE FOLLOWING QUESTIONS BASED ON THE KEYNESIAN
ECONOMY DESCRIBED IN THE TABLE BELOW. ALL FIGURES ARE IN $
BILLIONS.
(2 points) A. Fill in the blanks in this table, making
the usual assumptions presented in the Keynesian theory (Chapter
9). All figures are in $ billions.
(1 point) B. Calculate...
YU core: UOL i pi ext Problem 4.5a Question Help You are given the following data...
YU core: UOL i pi ext Problem 4.5a Question Help You are given the following data concerning Freedonia, a legendary country: . Consumption function: C = 100+ 0.80Y • Investment function: I = 300 Aggregate expenditure function: AE = C + Equilibrium: AE = Y The MPC in Freedonia is 0.8. (Round your response to two decimal places.) The MPS in Freedonia is 0.2. (Round your response to two decimal places.) The level of equilibrium income, Y, is $ 2000....
please answer 7,8,9,10. thank you so much!!:))
SECTION In the simple Keynesian model with an MPC equal Keynesian model with an MPC equal to 0.80, a S50 billion increase in investment spending leads to a maximum: $50 billion increase in equilibrium income. b. 580 billion increase in equilibrium income $250 billion increase in equilibrium income. d. $400 billion increase in equilibrium income S500 billion increase in equilibrium income. when $2.000 increase in income causes a $1,800 increase in consumption spending...
Question 12 1 pts The fraction, or percentage, of total income that is consumed is called the break-even income. consumption schedule. marginal propensity to consume. average propensity to consume. Question 14 1 pts The effect of a decline in taxes on the level of income will differ somewhat from an increase in government expenditures of the same amount because tax declines tend to be more expansionary households may not spend all of an increase in disposable income. the MPC that...
can someone help on setting and solving for a-c
Problem Set 2 ENV ECON 147 DUE: Feb 26 11:59 PM There are four questions on this assignment. The first two questions are typical of the kind of questions I might ask on an exam. The last two question are more difficult. Feel free to come to office hours for help. Question 1: Bertrand Competition in theory) Two firms produce heterogeneous goods and compete in prious. The demand and cost functions...
QUESTION 21 Suppose investment spending initially increases by $50 billion in an economy whose MPC is 2/3. By how much will this ultimately change real GDP? O A $75 billion OB. $50 billion OC $ 150 billion D. $ 200 billion QUESTION 22 Which of the following statements is FALSE? O A When income increases MPS is constant When income increases APS Increases C. When income increases MPC is increases D. When income increases APC decreases QUESTION 23 If the...
Econ Public Finance, please help!
Question 1 (10 pts) A government is considering paving a highway with a newly developed "wear-proof" material. Paving the highway would cost $4 billion today, but it would save $400 million in maintenance costs for each of the next 10 years. Use the concept of present value to determine whether the project is worth undertaking if the government can borrow at an interest rate of 4%. Is it worth it if the interest rate is...
13. The reason for the multiplier effect is that a. one person's additional expenditure constitutes a new source of income for another person, and this additional income leads to still more spending, and so on. b. changes in government spending typically deepen recessions or exacerbate inflationary conditions in the economy. c. businesses make decisions about investment projects based on anticipated profits. d. additional spending lowers the real interest rate and leads to further borrowing and spending by businesses. 14. If...
QUESTION 3: KEYNESIAN MODEL (7 POINTS)
(You must show all steps of your calculations to get credit
for each item of this question; otherwise, you will be deducted
marks)
ANSWER THE FOLLOWING QUESTIONS BASED ON THE KEYNESIAN
ECONOMY DESCRIBED IN THE TABLE BELOW. ALL FIGURES ARE IN $
BILLIONS.
(2 points) A. Fill in the blanks in this table, making
the usual assumptions presented in the Keynesian theory (Chapter
9). All figures are in $ billions.
(1 point) B. Calculate...
YU core: UOL i pi ext Problem 4.5a Question Help You are given the following data concerning Freedonia, a legendary country: . Consumption function: C = 100+ 0.80Y • Investment function: I = 300 Aggregate expenditure function: AE = C + Equilibrium: AE = Y The MPC in Freedonia is 0.8. (Round your response to two decimal places.) The MPS in Freedonia is 0.2. (Round your response to two decimal places.) The level of equilibrium income, Y, is $ 2000....
Most questions answered within 3 hours.
-
How many phosphodiester bonds are present in 1200 bp
plasmid?
asked 26 minutes ago -
Describe the differences in behavior of fixed costs, variable
costs, semi-variable costs and step costs. Then...
asked 31 minutes ago -
A chemist had a bottle of HCl (aq) of unknown concentration. She
performed a titration experiment...
asked 1 hour ago -
According to the network system security, please explain:
1- What is canary and how it does...
asked 2 hours ago -
Study the provided BagInterface and the methods implemented in
the ResizableArrayBag
For the following methods that...
asked 2 hours ago -
Enter your answer in the provided box. To what fraction of its
original volume, Vfinal/Vinitial, must...
asked 3 hours ago -
Can you figure out if any R functions used to subset a time
series 1 or...
asked 3 hours ago -
Which of the following is correct?
A. APC + MPS = 1
B. APS + MPS...
asked 3 hours ago -
Given a regression sum of squares equal to 2373.59 and a total
sum of squares equal...
asked 5 hours ago -
Compare and contrast the linear motion and angular motion
equations F ma and . That is,...
asked 4 hours ago -
Now that this course has taken you on a journey of introduction
to the world of...
asked 5 hours ago -
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 7 hours ago