Question: 1. Consider a simple macro model with demand-determined output and the following specific parameter values: MPC out of disposable income = 0.6, MPC out of

1. Consider a simple macro model with demand-determined output and the following specific parameter values: MPC out of disposable income = 0.6, MPC out of national income = 0.48 and marginal propensity to import = 0.2. Then, the personal income tax rate in this economy is __________ and simple multiplier is ___________.

A. 10%; 1.51

B. 20%; 1.38

C. 15%; 1.33

D. 20%; 1.66

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Question 1 Consider a simple macro model with a constant price level and demand-determined output. We are given the following equations: C = 420 + 0.72Y, I = 200, G = 300, T = 0.2Y, X = 280, IM =...

Question 6 (1 point) Consider an economy with the following characteristics - Equilibrium national income: Y = C +| - Autonomous consumption: 640 - Marginal propensity to save: 0.20 I Autonomous...

- Please explain WHY the answer for question 16 is B. - Please explain WHY the answer for question 38 is B. - Please explain WHY the answer for question 57 is E. - Please explain WHY the answer for...

Calculate the marginal propensity to consume...etc Listed below are the other questions. Assignment 6 - The Simple Model with Government & Foreign Trade Instructions: For the following question,...

I need to show work and equation for the calculations. thank you Assignment Ch21e,22 - The Simple Model with Government 8!. Foreign Trade Instructions: For the following question, write your answers...

Consider a simple macro model with a constant price level and demand-determined output. We are given the following equations: C = 220 + 0.9Y, I = 200, G = 100, T = 0.1Y, X = 80, IM = 0.11Y. Calculate...

I need to show work, thank yoi Instructions: For the following question, write your answers in the space provided. Show all work. Answers must be hand-written. Upload pdf le to the assignment folder...

1. Suppose you are given the following information for an economy without government spending, exports, or imports.C is desired consumption, I is desired investment, and Y is income. C and I are...

Chapter 7: FIXED BLUR Question 1 (1 point) Saved Suppose exports (X) = 100, real GDP (Y) = 500, and imports are equal to my, where m is the marginal propensity to import. Net exports would be equal...

Chapter 7: URGENT PLS HELP! Question 1 (1 point) Shed Suppose exports (X) = 100, real COP (1) = 400, and imports are equal in my, where win the marginal propensity to import. Net exports would be...

During the year Eairen had the following transactions Salary 90000 Short term capital gain from a stock investment 4000, Received repayment of 20000 loans. He made to his brother includes no interest...

Portfolio A consists of a one-year zero-coupon bond with a face value of $10,000 and a 5-year zero-coupon bond with a face value of $40,000. Portfolio B consists of a 4.121-year zero-coupon bond with...

A manufacturing cell could produce a maximum of 6,000 units per week using 2,000 productive hours. Last week, it produced 5,000 units. What is the theoretical cycle time? Actual cycle time?

The specifications for a plastic liner for the concrete highway project calls for a thickness of 3.0 mm0.1 mm. The standard deviation of the process is estimated to be .02 mm. The process is known to...

7. How can the models we use have a detrimental effect on others?

2. In this chapter, the reader should reflect on the following concepts: Systemic structuring, the displaced error, the communicable part of knowl-edge, tacit knowledge, hidden knowledge, analogy,...

2. List five points that are crucial to pay attention to if you want to positively influence someone from a foreign culture.