Marginal propensity to consume

Assignment Help Business Economics
Reference no: EM131669825

1) Suppose the government increases expenditures by ?100 billion and the marginal propensity to consume is 0.50. By how will equilibrium GDP? change?

The change in equilibrium GDP? is: ?$ billion. (Round your solution to one decimal? place.)

2) Suppose you deposit ?$ 2,000 cash into your checking account. By how much will checking deposits in the banking system increase as a result when the required reserve ratio is 04?0 The change in checking deposits is equal? to: ?$

?(enter your result rounded to the nearest dollar?).

Reference no: EM131669825

Questions Cloud

How important is effective communication during a crisis : How important is effective communication during a crisis? How important is stakeholder relations management during a crisis?
Impact on the equilibrium price and quantity : (1) Use demand and supply analysis to illustrate the impact on the equilibrium price and quantity in the corn market of the following.
Why might liberty media have wanted to help sirius xm : Other than for purely financial reasons (interest on the loan and potential gains from its investment), why might Liberty Media have wanted to help Sirius XM?
Explain disaster recovery plan and business continuity plan : What is the difference between a disaster recovery plan and a business continuity plan? I want 200 to 250 words.
Marginal propensity to consume : Suppose the government increases expenditures by ?100 billion and the marginal propensity to consume is 0.50. By how will equilibrium GDP? change?
How can technology and awareness techniques assist : How can technology and awareness TECHNIQUES assist a parents of youth type one diabetics - how we can use these technology to influence parents knowledge
Adapting an american cultural icon to the african market : By the time Alex Okosi was ready to launch MTV in Africa, the company had already set up 99 other versions of the music and entertainment channel around.
Compare one tool for each of three network management areas : Compare and contrast, at least, one tool for each of the three network management areas. What is the best tool for each area?
Why do unions support minimum wages : Why do unions support minimum wages and how does an increase in the minimum wage increase the demand (not necessarily wages) for union labor?

Reviews

Write a Review

Business Economics Questions & Answers

  Determining the business environment

Right now RAID 5 is arguably the most popular level used in the business environment. However, there is a push from some sectors to move to RAID 6. Is this a valid position? What are the pros and cons of moving to RAID 6 versus staying with RAID 5..

  Q1 suppose the parliament passes legislation making it more

q1. suppose the parliament passes legislation making it more difficult for firms to fire workers e.g. law requiring

  Growth from exports-public investment to consumption

What are five challenges China’s economy faces as its leadership tries to change the source of growth from exports and public investment to consumption? Why might a slowdown in China’s economy not pose serious problems for the U.S. economy?

  Companies that reduce their margins on export products in

Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to

  What is the lucas critique

1: Explain Monetarism. 2: What is the Taylor Rule and why is it important to this field of study? 3: What is the Lucas critique?

  Using the sample mean to test the null hypothesis

Suppose you are using the sample mean to test the null hypothesis H0: mu

  How many tiers are there currently in the cisco hierarchy

How many tiers are there currently in the Cisco hierarchy of certifications and what are they?

  Optimal combination of college credits and drama classes

Each term, Dana, a student at Cabrini Community College has a budget of $4,000 she can spend on college credits and drama classes. Each college credit costs $200, while a drama class costs $100. Dana considers college credits an imperfect substitute ..

  Considering three alternative education-work options

Peter has just graduated from high school. He will live for three more periods, and he is considering three alternative education-work options. He can start working right away, earning $100,000 in period 1, $110,000 in period 2 (as his work experienc..

  Adjusting the amount of labor

If the price of capital is $24, the price of labor is $15, and the marginal product of capital is 16, the least costly combination of capital and labor requires adjusting the amount of labor until its marginal product is equal to .............

  Explain how much consumer surplus exists in this market

Explain how much consumer surplus exists in this market. If a $2.00 excise tax is levied on this good what will happen to equilibrium price and quantity.

  What happens to the equilibrium prince and quantity in each

What happens to the equilibrium prince and quantity in each markets when the government reduces the supply ofgoods with elastic demand.

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!

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