If the marginal propensity to consume is 0.75, by how much would government spending have to rise
Question:
If the marginal propensity to consume is 0.75, by how much would government spending have to rise to increase output by $1,000 billion? By how much would taxes need to decrease to increase output by $1,000 billion?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (6 reviews)
The marginal propensity to consume is 075 The amount of increase required in au...View the full answer
Answered By
Milan Mondal
I am milan mondal have done my Msc in physics (special astrophysics and relativity) from the University of burdwan and Bed in physical science from the same University.
From 2018 I am working as pgt physics teacher in kendriya vidyalaya no2 kharagpur ,west bengal. And also I am doing advanced physics expert in chegg.com .also I teach Bsc physics .
I love to teach physics and acience.
If you give me a chance I will give my best to you.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
The Economics of Money Banking and Financial Markets
ISBN: 978-0321785701
5th Canadian edition
Authors: Frederic S. Mishkin, Apostolos Serletis
Question Posted:
Students also viewed these Corporate Finance questions
-
Suppose there is a $200 billion recessionary gap. If there are no taxes or imports to restore the economy back to potential GDP how much should government expenditure be changed if the marginal...
-
Rise. The fall in spending from an increase in taxes is always less than the change in taxes because the marginal propensity to consume is less than 1. By contrast, autonomous spending rises...
-
Suppose the monetary policy curve is given by r = 1.5 + 0.751(, and the IS curve is given by Y = 13 - r. a. Calculate an expression for the aggregate demand curve. b. Calculate the real interest rate...
-
You are in the market for a new car and have narrowed your search down to two types: Car X costs $36,300, will last for four years, and will be worth $3,630 at the end of its useful life. It will...
-
What is the relative (%) change in P if we double the absolute temperature of an ideal gas keeping mass and volume constant? Repeat if we double V having m, T constant.
-
Financial analysts like to use the standard deviation as a measure of risk for a stock. The greater the deviation in a stock price over time, the more risky it is to invest in the stock. However, the...
-
The use of chlorofluoro carbon refrigerants is banned because these react with (a) water vapours and cause acid rain (b) plants and cause green house effect (c) oxygen and cause its depletion (d)...
-
Given all the information, explain why the following components of the new agreement are predictable outcomes. a. The new agreement gives a $5,000 signing bonus to eligible UAW-represented GM...
-
The Executive Director (ED) of a North Philadelphia non-profit organization has been in place for the last 16 years. Many changes have occurred during this time. For example: more people come to work...
-
Fancy Paints is a small paint store. Fancy Paints stocks 200 different SKUs (stock-keeping units) and places replenishment orders weekly. The order arrives one month (let's say four weeks) later. For...
-
George just accepted a job as an apartment manager and is paid a salary of $28,000 per year. In addition to the salary, he is offered the choice of rent-free use of an apartment or a $500 per month...
-
Assuming both taxes and government spending increase by the same amount, derive an expression for the effect on equilibrium output.
-
Evaluate the following limits. tanx /2 -1 lim 1/ 0
-
Honey plc is a UK company which has two forthcoming US dollar transactions, a $3,500,000 receipt from a US customer and a payment of $5,019,400 to a US supplier. These transactions are expected to...
-
A phone company divides a city into n cells C, C2,..., C. In each cell it has a tower. When a call comes to a mobile user the company has a set of probabilities P, P2, ..., Pn such that the user is...
-
What is the output of the given code block? number1= 60 number2 = 40 if number1 + number2 = 100: print("sum is 100") else: print("sum is not 100") Your answer: sum is not 100 sum is 100 sum is not...
-
Let A ERmxn with m
-
Big Co acquired 70% of the common Stock of Little Co. on 1/1/22 for $301,000. The fair value of the non-controlling interest was $129,000. Little's book value on that date was $300,000. Little had...
-
Evaluate the integral. sin'0 cos*e de
-
Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2012 is: Joint cost of production in July 2012 was $50. A...
-
The unadjusted trial balance for Sierra Corp. is shown in Illustration 4-4 (page 168). In lieu of the adjusting entries shown in the text at October 31, assume the following adjustment data. 1....
-
The income statement of Kaleta Co. for the month of July shows net income of $1,500 based on Service Revenue $5,500; Salaries and Wages Expense $2,100; Supplies Expense $900, and Utilities Expense...
-
This is a partial adjusted trial balance of Fenske Company. InstructionsAnswer these questions, assuming the year begins January 1.(a) If the amount in Supplies Expense is the January 31 adjusting...
-
In her Ted talk, Kristi Rogers talks about the future of advertising and why it's crucial for ads to be relevant. She points out that even though we have lots of data and technology for digital ads,...
-
Consider ways in which an employer can make an employee feel like part of the team and/or empower them to act. More specifically, please respond to the following questions: How can an employer work...
-
How can you use your understanding of diversity to develop your relationship-building skills in your healthcare career?,Explain ways in which religion can help or hinder individuals as they build...
Study smarter with the SolutionInn App