By how much will consumption decline

Assignment Help Econometrics

Reference no: EM131142132

Suppose households save 5 percent of their disposable income. If the government increases expenditures and taxes by $100 billion, by how much will saving decline? By how much will consumption decline? What happens to investment? (Assume a closed economy.)

Reference no: EM131142132

Questions Cloud

How much did prices rise during the civil war : Wartimes are usually associated with inflation. According to the Inflation Calculator at www.bls.gov/cpi/home.htm, what would $100 in 1860 be worth in 1865? By how much did prices rise during the Civil War?

Describe situation with the drugs crossing border into us : Describe the situation with the drugs crossing the border into the United States. Is it possible to adequately address this issue and not affect the US / Mexican economic status?

Are there protective measures in place to ensure its safety : Provide any information that you feel is unique to each sector. In your local community, research the infrastructure, and identify one particular element that may be of particular interest to a terrorist or vulnerable to natural or manmade disaste..

What is translation adjustment determined solely for 2015 : If this is a translation. what is the translation adjustment determined solely for 2015? - If this is a remeasurement. what is the remeasurement gain or loss determined solely for 2015?

By how much will consumption decline : Suppose households save 5 percent of their disposable income. If the government increases expenditures and taxes by $100 billion, by how much will saving decline? By how much will consumption decline? What happens to investment? (Assume a closed e..

Compute the per-unit resistance of the load : Determine the load resistance in ohms referred to the high-voltage side and the per-unit value on the chosen base.

Why are they important components of theoretical schemes : What are the key differences between the 4 identified types of research theories listed in the assignment instructions? Is anyone type of theory more valid than the others? Why or why not?

Discuss the effect on employment and output : discuss the effect on employment, output, the real rate of interest, investment, and saving if households become more optimistic about the future and as a result reduce their current saving.

Compute the per-unit reactance of the transformer : Compute the per-unit reactance of the transformer - what value of the per-unit reactance should be used to represent this transformer?

User Account

All Pages