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In order to financially stimulate the nation, the Federal government injected $800 billion dollars into the economy. However, the results were less than spectacular. One reason could have been a failure to understand the marginal propensity to consume. Assume the marginal propensity to consume (MPC) was only 0.4. How much of that $800 billion went to increased consumption? Where did the rest of the money go?
Increased consumption: ________________________
Where did the rest go? _________________________
Using MPC = 0.4, what is the multiplier (the actual numerical value please): ___________________
What was the total change in spending as a result of the stimulus package? __________________
Back in the 1950's a piece of gum was 5 cents and today it is $1. Inflation has occured so that does that mean that people can afford to have less gum? Do they have less purchasing power? Explain please.
What does the textbook say are the two factors that shift the consumption function upward or downward?
what value would you predict for S? b. What happens if P is reduced to $17,1500? c. How would you go about developing a value for k? d. What are the potential weaknesses of this model?
Elucidate how these tendencies lead to religion becoming evil, how does Kimball respond to them and how the Greek Orthodox tradition transcends them.
Brinley puts on an art show in a public space asking for donations base on how much people enjoy his work.
Saint and Lewis Investment Management (SLIM) Inc. is considering purchasing bonds to be issued by Caterpilar Inc. The bonds have a face value of $10,000 and a coupon rate of 6%. The bonds will mature 10 years after they are issued. The issue price is..
Some U.S hospitals are using radiologists in India to save costs. Choose any hospital and state if it is using outsourcing for cost saving? Are you for or against outsourcing in healthcare sector? Explain.
Floor-A-Day is a disposable paper floor manufacturing firm, operating in a competitive industry with several firms that offer very similar wages and benefits to their workers. The proposed offer matching policy may increase the wage bill by far more ..
Consider the market for chocolate. Say that bad weather has hurt cocoa bean crops. At the same time, people are wanted to eat more chocolate. Which event affects demand, and which affects supply? What would be the effect on equilibrium price and ..
Use 2 supply and demand diagrams, one for the product market and the other for the labor market, to show how increase trade with other countries has decreased the ability of unions to raise wages for their members.
Briefly discuss the differences between the Ricardian Theory, Specific Factors Model and Heckscher-Ohlin Theory of Trade.
The supply of paintings by Leonardo Da Vinci, who painted the Mona Lisa and The Last Supper and died in 1519, is highly inelastic. The federal government decides to require that automobile manufacturers install new anti-pollution equipment that costs..
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