User Account

All Pages

Calculate the values of mpc

Assignment Help Macroeconomics
Reference no: EM132550697

In each of the following cases, calculate the values of MPC, MPW, and the spending multiplier. Enter your responses below rounded to 2 decimal places.

a. A $8 million increase in income leads to a $1,600,000 rise in consumption on domestic items. MPC is therefore , MPW is and the spending multiplier is.

b. A $10 million decrease in income results in a $3 million drop in consumption on domestic items. MPC is therefore , MPW is and the spending multiplier is.

c. A $6 million decrease in income causes a $3 million drop in withdrawals. MPC is therefore , MPW is and the spending multiplier is.

Reference no: EM132550697

Questions Cloud

Nixon administration imposed wage and price controls : U.S. productivity fell, and oil prices began to rise, each of which, when combined with rigid government regulations, created higher
Structures and functions of the urinary system : Explain the structures and functions of the urinary system, make certin to include critical process for urine production.
Differences between descriptive and evaluation research : When we want to understand the direct relationship between two or more things, we are using which type of research? When we prematurely jump to conclusions.
What is the customer response time : What is the customer response time? Order placed on production 5 April Production commenced 12 April, Order completed 15 April Order delivered to customer.
Calculate the values of mpc : In each of the following cases, calculate the values of MPC, MPW, and the spending multiplier.
Explain each of subfields of anthropology : Explain each of the subfields of anthropology and the importance of the four-field approach.
Balance of payments in a prior year : (1) Goods exports+$220(2) Goods imports-328(3) Exports of services+54(4) Imports of services
What variable cost per unit will : What variable cost per unit will , Within the relevant range? increase as the level of activity increases./decrease as the level of activity increases.
Relationship between inflation and unemployment : What is the relationship (if any) between inflation and unemployment? How might the two affect each other?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain arch and garch

You are working in a financial institution and your boss proposes to upgrade the financial risk-management methodology the company uses.

  What is the level of required reserves and excess reserves

What is the level of required reserves and excess reserves held by banks in this town?

  Price elasticity of demand for appetizers

A. Calculate the arc price elasticity of demand for appetizers. B. Calculate the arc cross-price elasticity of demand between beverage sales and appetizer prices.

  Why government support public education

Explain why does the government support public education when the private sector also provides this service and describe why labor productivity is important but not the only key to improvement in living standards.

  Simple time series forecast for gdp

Simple time series forecast for GDP - Clarify forecast assumptions on influential external or internal developments - Baseline forecast scenario

  Computing expected rate of return

Assume a company expects that a $20 million expenditure on R&D will result in a new product that will rise its revenue by a total of $30 million 1 year from now.

  What incentive was to create and attend the first earth day

Briefly explain what the incentive was to create and attend the first Earth Day. What economic principles might explain your answer to Question 1?

  What is the total debt of the government

In year three, the government runs a surplus of $800 million. What is the total debt of the government at the end of year three?

  Estimated from straight-line depreciation

The maintenance costs for the gas furnace are covered under guarantee for the first five years. Themarket value of the gas furnace can be estimated from straight-line depreciation with a salvagevalue of $500 after 10 years. Using a MARR of 10 perc..

  Essay on us airline regulation

During the period of airline regulation, the government set airline fares and regulated an air carrier's entry into and exit from particular markets.

  Write out a utility function

a. If Blutarsky only cares about the total amount of alcohol in his basket, what is his marginal rate of substitution of bottles of vodka for six? packs of beer? b. Write out a utility function to represent these preferences.

  Changes in demand and supply of particular goods

Refer to week 2 content materials and use specific economic vocabulary within your summary, i.e. demand, quantity demanded, determinants of demand, shifts in demand curve, etc. Likewise with supply. Also you should discuss changes in equilibrium q..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd