Marginal propensity to consume

Assignment Help Business Economics
Reference no: EM13985614

Marginal propensity to consume (MPC) is the slope of the Keynesian AE curve. Using an equation and words, describe the relationship between MPC and the Keynesian spending multiplier.

Reference no: EM13985614

Questions Cloud

What if women comprise the bulk of microwave shoppers : A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to th..
Spend their time on reducing costs or on pricing strategies : Relative to managers in more monopolistic industries, are managers in more competitive industries more likely to spend their time on reducing costs or on pricing strategies?
Is such a flat tax progressive-proportional or regressive : A number of people have argued for a flat tax with each person getting a personal exemption of, say, $10,000, meaning that they pay zero tax on the first $10,000 of income and then 20% on all income above that. Is such a flat tax progressive, proport..
Regressive using the keynesian consumption function : You can show that a tax on consumption is regressive using the Keynesian consumption function. Suppose C= 1,000 + .5 Yd, and the government collects 10% of all consumption expenditures in taxes. Calculate the taxes paid by the household earning Yd= 1..
Marginal propensity to consume : Marginal propensity to consume (MPC) is the slope of the Keynesian AE curve. Using an equation and words, describe the relationship between MPC and the Keynesian spending multiplier.
What is the probability that the number of customers : On a given day in October, the number of customers that visit Hannah’s Haunted House is normally distributed with a mean of 85 and a variance of 400. What is the probability that the number of customers on one day is between 75 and 100?
What is your total dollar return on this investment : Six months ago, you purchased 1,200 shares of ABC stock for $21.20 a share. You have received dividend payments equal to $.60 a share. Today, you sold all of your shares for $22.20 a share. What is your total dollar return on this investment?
What are the arithmetic and geometric average returns : What are the arithmetic and geometric average returns for a stock with annual returns of 4%, 9%, -6%, and 18%? A. 5.89%; 6.25% B. 6.25%; 5.89% C. 6.25%; 8.33% D. 8.3%; 5.89% E. 8.3%; 6.25%
Some additional land and build a new assisted living center : Meadow Brook Manor would like to buy some additional land and build a new assisted living center. The anticipated total cost is $23.6 million. The CEO of the firm is quite conservative and will only do this when the company has sufficient funds to pa..

Reviews

Write a Review

Business Economics Questions & Answers

  Produce the monopoly output

What is the output of each firm if they collude to produce the monopoly output? What profit does each firm earn with such collusion.

  What happens to quantity of labor he demands-wage increases

Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. What happens to the quantity of labor he demands if the wage increases to w1 = $12?

  Draw a tree for this game and ?nd rollback equilibrium

Congress does not have enough votes to override a veto. Draw a tree for this game and ?nd the rollback equilibrium.

  The fair labor standards act

The Fair Labor Standards Act, enacted in 1938, requires that firms pay "double time", which is 200% of the regular wage rate, for overtime work. This question asks you to consider some of the incentive effects of overtime pay. When faced with the bud..

  The three problems of resource allocation are faced by

The three problems of resource allocation are faced by

  Money plays under the classical macroeconomic model

Explain the role that money plays under the Classical Macroeconomic Model. As a part of your discussion, include the impact the Quantity Theory of Money and Say’s Law have on this model and state in algebraic terms how the money supply relates to pri..

  Calculate the consumer and producer surplus in market

The demand and supply functions for basic cable TV in the local market are given as: Q(D) = 200,000 - 4,000P and Q(S) = 20,000 + 2,000P. Calculate the consumer and producer surplus in the market. If the government implements a price ceiling of $15 on..

  Intra industry trade and inter industry trade

An increase in the number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.

  Explain why vendors seek out bargain-priced business

For those 50 or older, membership in AARP, formerly known as the American Association of Retired Persons, brings numerous discounts for health insurance, hotels, auto rentals, shopping, travel planning, etc.

  What are the key determinants of price elasticity of demand

What are the key determinants of the price elasticity of demand for meals served at high-end restaurants?

  Represents the physical capital resource

When a chef creates a dinner plate of food for a customer, which of the following represents the physical capital resource?

  What saving rate would yield golden-rule level of capital

Consider an economy in which production characterized by the neoclassical function Y=K^.5N^.5. Suppose, again, that it has a saving rate of .1, a population growth rate of .02 and a average depreciation rate of .03. Determine what saving rate would y..

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