Assuming the government increase Health spending by $25billion, if the Marginal Propensity to Consume (MPC) is 0.75.

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

Question:

Assuming the government increase Health spending by $25billion, if the Marginal Propensity to Consume (MPC) is 0.75. By how much will total spending increase?

Related Book For answer-question

Macroeconomics

ISBN: 978-1319120054

3rd Canadian edition

Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson

See More Books

Posted Date: Nov 01, 2022 01:46 AM

See More Questions

If the marginal propensity to consume is 0.75, how much would government spending have to rise to increase output by $1000 billion? How much will taxes need to decrease to increase output by $1000...
Find the consumption function if the marginal propensity to consume is 0.6 and consumption is 10 when income is 5. Deduce the corresponding savings function.
An economy has a marginal propensity to consume of 0.5, and Y*, incomeexpenditure equilibrium GDP, equals $500 billion. Given an autonomous increase in planned investment of $10 billion, show the...
Consider a single toss of a fair coin, and define X as the number of heads that come up on that toss. Then X can be 0 or 1, with a probability of 50 %. The expected value of X is 1/2 . Can we expect...
Certain Japanese have claimed that Henry Fords assembly line provided some of the rationale for lean. What features of assembly lines are common to lean systems?
Define and explain business ethics, corporate values, and personal values.
Refer to Samsungs financial statements in Appendix A. Compute its debt ratio as of December 31, 2015, and December 31, 2014. Data From Samsung Financial Statement Appendix A Samsung Electronics Co.,...
Loxley Corporation is authorized to issue 50,000 shares of $10 par value common stock. During 2012, Loxley took part in the following selected transactions. 1. Issued 5,000 shares of stock at $45 per...
Laverne owns 100% stock of the Pizza Bowl, Inc. (PB), which operates a classy combination bowling alley/pizza parlor. Her basis in the stock is $24,000. In its first year of existence, PB earned...
Toms, Inc., produces various Mexican food products and sells them to Western Foods, a chain of grocery stores located in Texas and New Mexico. Toms, Inc., makes two salsa products: Western Foods...
The following spectra correspond to the IR spectra of octyl acetate. 1. Compare the theoretical spectrum with the experimental spectrum and identify the main characteristic absorption bands of the...
Explain the concept of the "bullwhip effect" in supply chain management and its impact on inventory levels.
In the process of assembling tractors, Quality Tractors uses tires, window glass, batteries, and spark plugs, among other things. These items can be classified as Group of answer choices major...
Annual US Consumer Price Index (CPI) and Industry Production (IP) between 2012 Jan 1 and 2022 Dec 31 1.1 Extract each series and convert them to tribbles 1.2 Compute the inflation (CPI) adjusted IP...
Explain the role of demand shaping in influencing consumer behavior and optimizing inventory levels.
Some employers are switching to this type of plan because they: (Select the best answer below.) A. place more responsibility on the employee to contribute the money and decide how it is invested. B....
ABC Inc. is planning to buy machine A which will cost $ 10 million. The expected life of the machine is 5 years. The salvage value of the machine is nil. ABC Inc. is expecting cash-flow of $ 5...
A copper sphere of 10-mm diameter, initially at a prescribed elevated temperature T;, is quenched in a saturated (1 atm) water bath. Using the lumped capacitance method, estimate the time for the...
You are hired as an economic consultant to the countries of Albernia and Brittania. Each countrys current relationship between physical capital per worker and output per worker is given by the curve...
Assess the accuracy of the following statement: If economists just had enough data, they could solve all policy questions in a way that maximizes the social good. There would be no need for divisive...
How do economists in Canada determine when a recession begins and when it ends? How do other countries determine whether or not a recession is occurring?
Let $X_{1}, \ldots, X_{n}$ be a set of independent and identically distributed random variables from a distribution $F$ with variance $\mu_{2}$ where \(E\left(\left|X_{1}ight|^{4}ight) a. Prove...
Consider a sequence of independent random variables $\left\{X_{n}ight\}_{n=1}^{\infty}$ where $X_{n}$ has probability distribution function \[f_{n}(x)= \begin{cases}2^{-(n+1)} &...
Let $X_{1}, \ldots, X_{n}$ be a set of independent and identically distributed random variables from a shifted exponential density of the form \[f(x)= \begin{cases}\exp [-(x-\theta)] & \text { for...

Assuming the government increase Health spending by $25billion, if the Marginal Propensity to Consume (MPC) is 0.75.

Question:

Expert Answer:

Increase in spending 25billion Marginal Propensity to C... View the full answer

Macroeconomics

Students also viewed these accounting questions