Question: If the marginal propensity to save is 0 . 3 , the tax multiplier is:

If the marginal propensity to save is 0.3, the tax multiplier is:

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!

Q:

John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303....

Q:

Complete the following: a. If the tax multiplier is -1, then the marginal propensity to save is _________ the marginal propensity to consume. b. If the government spending multiplier is 8, then the...

Q:

1.2.4 Complete the following: a. If the tax multiplier is -1, then the marginal propensity to save is _________ the marginal propensity to consume. b. If the government spending multiplier is 8, then...

Q:

Suppose that Good X and Good Y are complements in consumption. If the market price of Good X increases, then: Select one alternative: 0 the quantity demanded of Good Y increases, ceteris paribus. O...

Q:

tackle all parts 1. The diagram below shows a firm operating under conditions of perfect competition in the short run. Price (a) What is represented by the lines numbered 1 to 3? Use the answer box...

Q:

Injections include: O Consumer saving C) Business saving O Exports O Taxes It the marginal propensityr to consume is ELF, then the multiplier is: It the marginal propensity to consume is 0.9, 1what...

Q:

I. Use the numbers in the table below to answer the following. All gures are in billions of dollars. D1 = disposable income, C 2 consumption spending, S = saving, I 2 investment spending, AE =...

Q:

The marginal propensity to consume is0.8, the marginal tax rate is0.25, and the marginal propensity to import is 0.2. The government raises autonomous taxes and government expenditure by$100 million...

Q:

1. What is the multiplier if the marginal propensity to consume (MPC) is 0.5? Calculate the marginal propensity to save (MPS)? 2. What is the multiplier if the MPS is 0.2? Calculate the MPC. 3. As a...

Q:

4of4 c) Now in four different line diagrams, plot ination and long-term interest rate for the four countries, mentioned above. Is there any country, which shows deation trap at any particular time...

Q:

ECONHYU 2222 IN DETAILKS 7. (a) The Balance of Payments is made up of the Current Account and the Capital Account. Explain each of the underlined terms. Include details of the main components of each...

Q:

The figure shows the soil profile at point 'A. The soil is the same above and under the water table. A building will be constructed on the top of the soil given in sketch 1, which will apply an...

Q:

Blossom Company designated Jill Holland as petty cash custodian and established a petty cash fund of $248. The fund is reimbursed when the cash in the fund is at $34, which it is. Petty cash receipts...

Q:

Company ACE is replacing their ravioli press which is being sold for $ 2 5 0 , 0 0 0 and has anet book value of $ 5 0 , 0 0 0 . What is the tax implication if the marginal tex rate is 3 0 % ? A $ 6 0...

Q:

What effects are social media having on corporate communications? What effects are social media having on branding? Describe five good practices for corporate communications relating to social media.