The marginal propensity to expend is .8. Autonomous expenditures are $4,200. What is the level of equilibrium

Question:

The marginal propensity to expend is .8. Autonomous expenditures are $4,200. What is the level of equilibrium income in the economy? Demonstrate graphically

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

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 978-0077307110

8th edition

Authors: David Colander

See More Books

Question Posted: Feb 12, 2016 05:02 AM

See More Questions

The marginal propensity to expend is .5 and there is a recessionary gap of $200. What fiscal policy would you recommend?
The marginal propensity to expend is .66 and autonomous expenditures have just fallen by $20. a. What will likely happen to equilibrium income? b. Demonstrate graphically.
What happens to equilibrium income when the marginal propensity to expend rises?
Children out of School in America is a report on delinquency of school-age children prepared by the Childrens Defense Fund (CDF), a government-sponsored organization. Consider the following three...
The internal auditing department was told that two employees were terminated for falsifying their time records. The two employees had altered overtime hours on their time cards after their...
Giancarlo Stanton hit 59 home runs in 2017. If his home-run output grew at a rate of 12 percent per year, what would it have been over the following 5 years?
Using the basic physical constants, show that $C_{1}=3.742 \times 10^{8} \mathrm{~W} \mu \mathrm{m}^{4} / \mathrm{m}^{2}$ and $C_{2}=$ $1.4389 \times 10^{4} \mu \mathrm{m} / \mathrm{K}$ in the...
A bank manager of City savings bank Inc. uses the managerial accounting system to track the costs of operating the various departments with in the bank. The departments include Cash Management,...
Irvine Corporation's fiscal year-end is December 31, 2024. The following is a partial adjusted trial balance as of December 31. Accounts Debit Credit Retained Earnings $13,000 Dividends $1,300...
Automatic control of helicopters is necessary because, unlike fixed-wing aircraft which possess a fair degree of inherent stability, the helicopter is quite unstable. A helicopter control system that...
If planned expenditures are below actual production, what will happen to income? Explain the process by which this happens.
What is the current state of U.S. fiscal policy? Would you advise the United States to change its fiscal policy? Why?
Test the series for convergence or divergence. ! 2. 1 n?
An associate who is not an expert in financial futures was reviewing a publication describing the 3-year and 10-year Moscow City bonds published by the Russian Trading System Stock Exchange. In the...
Have you shopped in a checkout-free grocery store like Amazon Go or Amazon Fresh? If so, share your experience with your class. What did you like about it, and did you find anything frustrating?
a. Explain why you agree or disagree with the following statement by Gary Gastineau ("A Short History of Program Trading," Financial Analysts Journal, September-October 1991): Stock index futures and...
Acme Insurance Company has purchased a five-year bond whose interest rate floats with LIBOR. Specifically, the interest rate in a given year is equal to LIBOR plus 200 basis points. At the same time...
The Window Wipers Union (a pension sponsor) and the All-Purpose Asset Management Corporation (a money mariagement firm) entered into a four-year swap with a notional principal amount of $\$ 150$...
Solve the triangles with the given parts. A = 71.0, B = 48.5, c = 8.42
General Electric Capital, a division of General Electric, uses long-term debt extensively. In a recent year, GE Capital issued $11 billion in long-term debt to investors, then within days filed legal...
Can a player have a rollback strategy in a simultaneous move game?
State whether each of the following situations is a simultaneous or sequential game. Explain your answer. a. A congressional vote by roll call. b. The ultimatum game. c. The Civil War. d. The...
Would the results of the prisoners dilemma game be different if it were a sequential rather than a simultaneous game?
On-campus corporate presentations: Sympathy for the Devil Many students complain about the high number of corporate presentations taking place both on- and off-campus. In this question, we seek to...
How do organizations cultivate a culture of open innovation, leveraging crowdsourcing platforms, collaborative networks, and cross-industry partnerships to harness external knowledge and drive...
Braeden Sim is the accountant for Sim's Internet Service. From the following information, his task is to construct a balance sheet as of April 30, 201X, in proper form. Could you help him? (Click the...

The marginal propensity to expend is .8. Autonomous expenditures are $4,200. What is the level of equilibrium

Question:

Step by Step Answer:

If the mpe is 8 then the value of the multiplier is ...View the full answer

Macroeconomics

Students also viewed these Economics questions