Marginal propensity to consume

Assignment Help Business Economics

Reference no: EM13741027

Suppose there is a $200 billion recessionary gap. If there are no taxes or imports to restore the economy back to potential GDP how much should government expenditure be changed if the marginal propensity to consume is 0.75? Does government expenditure need to be increased or decreased?

Reference no: EM13741027

Questions Cloud

A risk management plan early during the r&d activities : How might the Army have responded if it were presented with a risk management plan early during the R&D activities

Desired reserve ratio : Riley deposits $4,000 cash in her checkable deposit at Fershur Bank. If the desired reserve ratio is 5%, Fershur Bank’s

Calculate the slope of the ad curve : Calculate the slope of the AD curve - Explain why the AD curve has the slope you calculated as a result of the "wealth effect".

What are realistic goals of treatment : Dental Ethics Case Presentation: What are realistic goals of treatment? What are the probabilities of success of each of those treatments? What are plans in case of therapeutic failure

Marginal propensity to consume : Suppose there is a $200 billion recessionary gap. If there are no taxes or imports to restore the economy back to potential GDP how much should government expenditure be changed if the marginal propensity to consume is 0.75? Does government expenditu..

Advantages of succession planning : Question 1: What are the advantages of succession planning? Question 2: What steps should be taken in order to give succession planning the greatest chance of success?

Disadvantages of using secondary data : What are the advantages and disadvantages of using secondary data in this particular case.

What is the arc income elasticity of demand for tobacco use : Medium household income in County C is $54,021. Medium household income in Country D is $28,739. In County C, 17.4 percent of residents smoke. In County D, 28.4 percent of residents smoke. What is the arc income elasticity of demand for tobacco use?

Solving skills required in contemporary hrm contexts : The purpose of this assessment is to evaluate your critical research and problem solving skills required in contemporary HRM contexts.

User Account

All Pages