Equal increases in government purchases and taxes

Assignment Help Other Subject

Reference no: EM13202149

Equal increases in government purchases and taxes will:

A. increase the equilibrium GDP and the size of that increase varies directly with the size of the MPC.
B. increase the equilibrium GDP and the size of that increase is independent of the size of the MPC.
C. increase the equilibrium GDP and the size of that increase varies inversely with the size of the MPC.
D. decrease the equilibrium GDP and the size of that decrease is independent of the size of the MPC.

Reference no: EM13202149

Questions Cloud

Present-day international relations and world politics : What are the important characteristics of the Persian Empire, classical Greece, the Roman Empire, and why did those empires eventually fail? What relevance, if any, does studying ancient empires have to understanding present-day international relatio..

Find the market clearing or general equilibrium price : Suppose we have two products in the market, orange and potato, the demand function and supply function for orange: Qd1 = 10 - 2P1 + P2 Qs1 = -2 + 3P1 the demand function and supply function for potato: Qd2 = 15 + P1 - P2 Qs2 = -1 + 2P2

Urban revivalism preached : The urban revivalism preached by Dwight L. Moody and others represented ?

Justify the rationale for the intervention of govt in us : Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers. Speculate about the implications for the goals of the firm as to whether to maximize the industry's profits or to create..

Equal increases in government purchases and taxes : Equal increases in government purchases and taxes will:

What is the yield to maturity : What is the yield to maturity and what assumptions are implicit in the calculation of the yield to maturity - what is the theoretical value of any investment

Encountered when a new drug is introduced to the market : What capacity problems are encountered when a new drug is introduced to the market? List some practical limits to economies of scale; that is, when should a plant stop growing? What are some capacity balance problems faced by the following organizati..

Maintaining relationship stability : In terms of the interpersonal needs theory, what three elements are involved in meeting someone's interpersonal needs as they relate to maintaining relationship stability?

Leadership roles-foreign policy and domestic policy : Describe the two different key leadership roles, foreign policy and domestic policy, which the U.S. president plays. When did these roles evolve as part of the presidency? Historically, what are some of the theories against these two different roles?

User Account

All Pages