Question: Suppose the MPC = 0 . 7 5 . If both Government spending and taxes increase by 1 0 0 0 the CHANGE in the

Suppose the MPC =0.75. If both Government spending and taxes increase by 1000 the CHANGE in the Government's budget Deficit is
Group of answer choices

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:

Volcker Rule - KEL703-PDF-ENG 1. In this case, at what stage in its life cycle is the nonmarket issue of the Volcker rule (regulation of proprietary trading)? 2. Map out the interests and their...

Q:

Financial Crisis, Bailouts, and the Need for Financial Regulation In 2007 worldwide credit markets tightened and international trade declined, resulting in economic slowdowns around the world, stock...

Q:

read the following case The Volcker Rule: Financial Crisis, Bailouts, and the Need for Financial Regulation In 2007 worldwide credit markets tightened and international trade declined, resulting in...

Q:

Government spending/net taxes 400 350 300 250 200 150 100 50 50 The Economy of Motak My Of Motak using the graph below. NTR G1 0 0 200 400 600 800 1000 1200 1400 Real GDP Tools G a. If GDP is $800...

Q:

MBA 5312 Macroeconomics Duration: 2.5 Hours Spring, 2021 Exam # 2 Answer ALL of the following questions (10 points each): 1. In a closed economy such that: C2200+0_9(Y7T) Md:0.20Y40R 1:300-20R...

Q:

Consider the following economy: Desired consumption: CSuperscript dd = 5 8 0 5 8 0 + [ 0 . 5 5 0 . 5 5 times ( Yminus T ) ] minus 4 5 4 5 r Desired investment: ISuperscript dd = 4 3 0 4 3 0 minus 4 5...

Q:

Question one. 2. Your stockbroker has called has called you about Netflix, Inc. (NFLX). She tells you that Netflix is selling for $370.00 per share and that she expects the price in one year to be...

Q:

Kindly help. 1) Rising prices erode the value of money as a ________ and a ________. 1) A) medium of exchange; store of value B ) unit of barter; unit of account C) store of value; unit of barter D)...

Q:

HI PLEASE ANSWER ALL 78 MULTIPLE CHOICE QUESTIONS THANK YOU 1. Which of the following will lead to a decrease in both equilibrium price and quantity in a market? a)A decrease in demand b)An increase...

Q:

Explain the following statements. Que 1. 1. John just bought shares of stock in IBM for $10,000 and paid a $90 commission to his broker. How did this affect GDP? A) It had no impact on GDP. B) GDP...

Q:

On January 1, 2011, Cunningham Corporation issued $200,000 in bonds that mature in 10 years. The bonds have a stated interest rate of 6 percent and pay interest on December 31. When the bonds were...

Q:

Arnold Inc. is considering a proposal to manufacture high-end protein bars used as food supplements by body builders. The project requires use of an existing warehouse, which the firm acquired three...

Q:

This diagram shows the hierarchy of quadrilaterals. In the diagram, a quadrilateral below another is a special case of the one above it. For example, a square is a special rectangle but a rectangle...

Q:

define "health."Next, distinguish among the biopsychological, life-span, and gender perspectives of health and illness.How is psychological well-being a public health concern?Why is this important...