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(a) Define the marginal propensity to consume and explain its role in determining the size of the multiplier.
(b) Explain how the size of the multiplier will change when one brings in the role of imports.
(c) Using the concepts in parts (a) and (b) above, calculate the slope of the AE curve and the size of the multiplier if MPC = 0.80. Then, calculate the revised slope of the AE curve and the multiplier when you know that the marginal propensity to import is 0.15 and the marginal tax rate (induced tax rate) is 0.2
Caroline received a $1 million payment from a lottery ticket. She decided to use the money to purchase a cupcake business. If Caroline had invested the $1 million in a money market account, she would have made $30,000 in interest each year.
The annual growth rate for the population in the state of West Virginia is one of the nation's lowest at 0.30%. Why do you think other states, for example, Virginia, have nearly four times this growth rate
Write a C++ program to store up to 5 testgrades for each of up to 5 courses. You should use a two-demensional array to achieve this task. Each row shouldrepresent the test grades for a given class.
CECN202 - INTERMEDIATE MACROECONOMICS - Explain what is meant by the neutrality of money - Will this fiscal policy action
Compute the new national income given MPC = 0.9, and an autonomous injection of $100B from federal government stimulus spending.
Expalin how does it estimate the demand for new products so that it can prepare a production run. Which is more important for your business: lower cost, quality, customer expectations, or some other feature.
Suppose two parties agree that the expected inflation rate for the next year is 3%. Based on this, they enter into a loan agreement where the nominal interest rate to be charged is 7%. If inflation for the year turns out to be 2%, who gains and who l..
As we all know, at current it is illegal for parents who want to adopt a child to pay the birth mother for, or to offer to pay for, the babies they adopt.
Assume the economy is initially in a long-run equilibrium. Describe the movement from a short-run to a long-run equilibrium following an increase in demand
In a diagram that has the number of workers on the horizontal axis and the number of shoes on the vertical axis, the relationship between the number of workers and the number of shoes starts as ________ and then, after the maximum point, is ______..
Explain why factors that are not part of the calculation of the Gross Domestic Product (GDP) can be important exclusions that have important meaning for understanding domestic macro-economics.
Need help with MBA6008, Unit 3 u03a1 Unit 3 Economic Problems assignment, Chapter 11, Problem 2. The topic is Long-Run Equilibrium. If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium?
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