If the MPC were 0.8, (a) How much spending would occur in the third cycle of Figure

Question:

If the MPC were 0.8,

(a) How much spending would occur in the third cycle of Figure 12.6?

(b) How many spending cycles would occur before consumer spending increased by $200 billion?

Figure 12.6

6: Sales increase by $75 t Product markets su Bupueds Jouns START 1: Government spends HERE S100 billon BUsiness firms G

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Essentials of Economics

ISBN: 978-1259235702

10th edition

Authors: Bradley Schiller, Karen Gebhardt

See More Books

Question Posted: Aug 30, 2017 11:54 PM

See More Questions

True or False: 1. The multiplier would be smaller if the marginal propensity to consume were smaller. 2. If the MPC were equal to two-thirds, the multiplier would be equal to 3. 3. The multiplier may...
If government purchases increased by $20 billion, other things being equal, what would be the resulting change in aggregate demand, and how much of that change would be a change in consumption, if...
1. In our simple model, if C = 100 + 0.8y, and I = 50, equilibrium output will be ______. 2. If in Exercise 3.1 I increase to 100, a. The equilibrium income will be ______. b. The multiplier is...
Consider a single-output, non-preemptive queueing system. It has three queues connected to the single output, and packets in the queues are handled based on a strict-priority order. The three queues...
We wish to compute the autocorrelation function of an upsampled signal, as indicated in Figure. It is suggested that this can equivalently be accomplished with the system of Figure. Can H 2 (e j? )...
A cylindrical specimen of a brass alloy 7.5 mm (0.30 in.) in diameter and 90.0 mm (3.54 in.) long is pulled in tension with a force of 6000 N (1350 lbf); the force is subsequently released. (a)...
Find an example of plot displaying geographic data and click on the image. You can answer the following questions using either the default variables and cases, or else use the menu on the left to...
Forestcrest Woolen Mills is a closely held North Carolina company that has existed since 1920. The company manufactures high- quality woolen cloth for mens and womens outerwear. Your firm has audited...
Find the sources of finance for Netflix, Amazon prime, alt Balaji, Zee 5 and Disney hotstar .find It's capital structure, its operating leverage, financial leverage, combined leverage and company...
The distance from Potsdam to larger markets and limited air service have hindered the town in attracting new industry. Air Express, a major overnight delivery service, is considering establishing a...
What was the short run (one month) MPC for the 2008 tax rebates (News Wire "Fiscal Stimulus: Tax Cuts")?
(a) The multiplier process depicted in Table 12.1 is based on an MPC of 0.75. Recompute the first four cycles using an MPC of 0.80. (b) How much more consumption occurs in the first four cycles? (c)...
The stones are thrown off the conveyor with a horizontal velocity v = v 0 as shown. Determine the speed at which the stones hit the ground at B. Given: Vo = 10 ft S h = 100 ft
The December 3 1 , 2 0 2 4 , unadjusted trial balance for Demon Deacons Corporation is presented below. \ table [ [ Accounts , Debit,Credit ] , [ Cash , $ 8 , 0 0 0 , ] , [ Accounts Receivable, 1 3 ,...
11. Selected information for Blake's Restaurant Supply follows. ($ millions) 2020 2021 Net sales 694 782 Cost of goods sold 450 502 Depreciation 51 61 Net income 130 142 Finished goods inventory 39...
highest mount you can ow finance 2. We sometimes need to find how long it will take a sum of money (or anything else) to grow to some specified amount. Note that you should enter PV as a negative and...
Provide the strengths and weakness of each of the theories of substance use disorders genetic, disease, moral, etc. What are the implications of each theory in an individual's pursuit of recovery...
ABC Corporation, a growing tech company, decides to raise capital by issuing convertible debt securities. Convertible debt allows bondholders the option to convert their debt into a predetermined...
To stimulate the sales of its Alladin breakfast cereal, Loptien Company places 1 coupon in each box. Five coupons are redeemable for a premium consisting of a childrens hand puppet. In 2021, the...
The Cholesterol Level data sets give cholesterol levels of heart attack patients. Cholesterol measures are taken 2, 4, and 14 days aft er a patient has suffered a heart attack. Is there a significant...
Suppose a tax is such that an individual with an income of $10,000 pays $2,000 of tax, a person with an income of $20,000 pays $3,000 of tax, a person with an income of $30,000 pays $4000 of tax....
Use the demand schedule below to calculate total revenue and marginal revenue at each quantity. Plot the demand, total revenue, and marginal-revenue curves, and explain the relationships between...
Suppose a pure monopolist is faced with the demand schedule shown below and the same cost data as the competitive producer discussed in problem 4 at the end of Chapter 10. Calculate the missing...
Give an example of one piece of financial information that may be used differently for two stakeholders (users) and explain how it would be used and presented differently?
Complete common -size statements (balance sheets) using the data below on page 246. You will be required to create a spreadsheet in MS Excel to display the statements (balance sheets).? In a 1 to 2...
A sail boat in the Great South Bay travels 2 miles east and then 4 miles south to get to Fire Island. What is its distance and displacement?

If the MPC were 0.8, (a) How much spending would occur in the third cycle of Figure

Question:

6: Sales increase by $75 t Product markets su Bupueds Jouns START 1: Government spends HERE S100 billon BUsiness firms Government Households Factor markets 2. Sales increase by $100 bilion by $75 bilion. 4: More income. 3: Increased jobs and wages

Step by Step Answer:

a 64 Billion b 5th round Explanation Keep in mind that each cycle is originated by a change in spending in the product market Cycle 1 Government spend...View the full answer

Essentials of Economics

Students also viewed these Economics questions