Homework Answers
If the MPC is 0.9 then the multiplier will be 1/ 1-MPC = 1 / 1- 0.9 = 10.
An increase in the investment by $100 billion will increase the GDP by $1000 billion.
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3. If the marginal propensity to consume is .9, and investment expenditures increase by $100 billion, what is the proje...
If the marginal propensity to consume (MPC) is 2/3 and investment spending increases by $2 billion,...
If the marginal propensity to consume (MPC) is 2/3 and investment spending increases by $2 billion, the level of real output (GDP) will: increase by $10 billion. O increase by $3 billion. increase by $6 billion. O Increase by $8 billion
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?
4. If the marginal propensity to consume is .9, and the government provides a $40 billion...
4. If the marginal propensity to consume is .9, and the government provides a $40 billion tax cut, what would be the projected change in GDP?
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...
If autonomous investment increases by $100 million and the marginal propensity to consume (MPC) is 0.75, then
If autonomous investment increases by $100 million and the marginal propensity to consume (MPC) is 0.75, then A. real Gross Domestic Product (GDP) will fall by $200 billion. B. real Gross Domestic Product (GDP) will rise by $100 billion. C. real Gross Domestic Product (GDP) will rise by $200 billion. D. real Gross Domestic Product (GDP) will rise by $400 billion.
If the marginal propensity to consume is 0.75, and there is no investment accelerator or crowding...
If the marginal propensity to consume is 0.75, and there is no investment accelerator or crowding out, a $120 billion increase in government expenditures would shift the aggregate demand curve right by $480 billion, but the effect would be larger if there were an investment accelerator. $360 billion, but the effect would be smaller if there were an investment accelerator. $480 billion, but the effect would be smaller if there were an investment accelerator. $360 billion, but the effect would...
10.) An economy has a marginal propensity to consume and Y* , income-expenditure equilibrium GDP,...
10.) An economy has a marginal propensity to consume and Y* , income-expenditure equilibrium GDP, equals $500 billion. Given an autonomous increase in plannėd investment of $10 billion, show the rounds of increased spending that take place by completing the accompanying table. The first and second rows are filled in for you. In the first row the increase of planned investment spending of $10 billion raises real GDP and YD by $10 billion, leading to an increase in consumer spending...
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?
Assume that Equilibrium GDP is $4,000 billion. Potential GDP is $5,000 billion. The marginal propensity to...
Assume that Equilibrium GDP is $4,000 billion. Potential GDP is $5,000 billion. The marginal propensity to consume is 4/5 (0.8). By how much and in what direction should government purchases be changed? Group of answer choices increase by $200 billion increase by $1,000 billion decrease by $1,000 billion increase by $100 billion
Suppose the marginal propensity to consume is 0.7 and the government votes to increase taxes by...
Suppose the marginal propensity to consume is 0.7 and the government votes to increase taxes by $1.5 billion. Round to the nearest tenth if necessary. Assume the tax rate and the marginal propensity to import are 0. Calculate the tax multiplier tax multiplier:-2.3 Calculate the resulting change in the equilibrium quantity of real GDP demanded -3.5 billion
If the marginal propensity to consume (MPC) is 2/3 and investment spending increases by $2 billion, the level of real output (GDP) will: increase by $10 billion. O increase by $3 billion. increase by $6 billion. O Increase by $8 billion
4. If the marginal propensity to consume is .9, and the government provides a $40 billion tax cut, what would be the projected change in GDP?
If the marginal propensity to consume is 0.75, and there is no investment accelerator or crowding out, a $120 billion increase in government expenditures would shift the aggregate demand curve right by $480 billion, but the effect would be larger if there were an investment accelerator. $360 billion, but the effect would be smaller if there were an investment accelerator. $480 billion, but the effect would be smaller if there were an investment accelerator. $360 billion, but the effect would...
10.) An economy has a marginal propensity to consume and Y* , income-expenditure equilibrium GDP, equals $500 billion. Given an autonomous increase in plannėd investment of $10 billion, show the rounds of increased spending that take place by completing the accompanying table. The first and second rows are filled in for you. In the first row the increase of planned investment spending of $10 billion raises real GDP and YD by $10 billion, leading to an increase in consumer spending...
Suppose the marginal propensity to consume is 0.7 and the government votes to increase taxes by $1.5 billion. Round to the nearest tenth if necessary. Assume the tax rate and the marginal propensity to import are 0. Calculate the tax multiplier tax multiplier:-2.3 Calculate the resulting change in the equilibrium quantity of real GDP demanded -3.5 billion
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