a. When MPC = 0.75, if G and T both increase by $1,000, what will happen to

Question:

a. When MPC = 0.75, if G and T both increase by $1,000, what will happen to equilibrium income?

b. By how much must T be increased (assuming G is increased by $1,000) so that equilibrium income does not increase?

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

Step by Step Answer:

Related Book For book-img-for-question

Economics Barrons Business Review Series

ISBN: 9781438008776

6th Edition

Authors: Walter J. Wessels

See More Books

Question Posted: Feb 18, 2024 04:00 AM

See More Questions

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...
Thirty years ago, Jack Houston and his wife, Trinity, established The Edge Car Wash Inc. on 20 acres of worthless land on the outskirts of Amarillo, Texas. They would have never imagined the urban...
Thinking Tools Services assembles customized personal computers from generic parts. Formed and operated by part-time SVCI students Paulette Cruz and Maureen Luis, the company has had steady growth...
What does a 9-cell industry attractiveness/business strength matrix displaying Kraft Foods' business units look like?
What is the y-coordinate of any point in the xz-plane?
Air at $300 \mathrm{~K}$ and $1 \mathrm{~atm}$ flows along a flat plate at $3 \mathrm{~m} / \mathrm{s}$. At a location of $0.3 \mathrm{~m}$ from the leading edge, find the thickness of the...
Northern Communications has the following stockholders equity: Requirements 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common...
Let f(x)= == 3x+7x-6 Find the equations of the horizontal asymptotes and the vertical asymptotes of f(x). If there are no asymptotes of a given type, enter 'NONE'. If there is more than one asymptote...
If the government wants to increase equilibrium income by $4,000 when MPC = 0.8, how much must it increase G?
Fill in the following table and answer these questions based on: a. What is the equilibrium income? b. What are the injections (G + I) and leakages (S + T) at this income? c. What will happen to...
Create a new concrete class that implements MyMap using open addressing with double hashing. For simplicity, use f(key) = key % size as the hash function, where size is the hash-table size....
Develop a marketing brochure or webpage stating all the important information a parent might need to consider your program for their child. . Including philosophy, name, address, phone, license,...
What term refers to the elevation of subjects of a painting by portraying them in poses and settings normally associated with positions of high status and power?
Simplify. Z -2 -2 4z
Identify key internal and external stakeholders, groups, and organizations involved in enforcing and maintaining operational sustainability regarding each aspect of the TBL.
An IT officer at the law firm described the system as being a type of Expert Systems technology that uses heuristics to match client cases with the thousands of previous cases in the database....
What are the five labels in the earnings management continuum (see Exhibit 6-4), and what general types of actions are associated with each label?
Halley's comet travels in an ellipti- cal orbit with a = 17.95 and b = 4.44 and passes by Earth roughly every 76 years. Note that each unit represents one astronomical unit, or 93 million miles. The...
Jean Baptiste Colbert was the Minister of Finance under King Louis XIV of France. He famously observed, The art of taxation consists in so plucking the goose as to obtain the largest possible amount...
What is rent seeking and how does it differ from the kinds of profit maximization and profit seeking that we discussed in previous chapters? Provide an actual or hypothetical example of rent seeking...
Tammy Hall is the mayor of a large U.S. city. She has just established the Office of Window Safety. Because windows sometimes break and spray glass shards, every window in the city will now have to...
Should Dubinski recommend a large repurchase, financed in part by a debt issue, to the board? The case does not propose a specific repurchase, so develop your own proposal and defend it. In...
Today is May15,2000, and the current , semi-annually compounded yield curve is in Table3.6.Compute the duration for the following securities: (d) 6-year coating rate bond with a zero spread, paying...
The cost of inventory is made up of Select one: a. cost of purchase, allocated direct labour, and allocated overhead. b. cost of purchase and allocated direct labour only. c. cost of allocated direct...

a. When MPC = 0.75, if G and T both increase by $1,000, what will happen to

Question:

Step by Step Answer:

a The balancedbudget multiplier is 1 so equilibrium income will go up 1000 b To n...View the full answer

Economics Barrons Business Review Series

Students also viewed these Business questions