Marginal propensity to consume affect the size

Assignment Help Business Economics
Reference no: EM133079147

At the same time as the RBA is reducing interest rates, the Australian Government will be running a budget deficit in 2020. How will this affect aggregate demand? A diagram would assist your answer here and attract further marks.

How will the size of the marginal propensity to consume affect the size of the multiplier and how will this impact on this fiscal policy initiative?

If consumers decide to increase their rate of savings due to increasing uncertainty about the future, explain how this will affect the fiscal policy initiative.

Discuss whether this fiscal policy initiative aligns with the RBA's decision to reduce interest rates.

Reference no: EM133079147

Questions Cloud

Explain why car manufacturers manufacture their own engines : Explain why car manufacturers manufacture their own engines, but buy glass from independent suppliers??
What is the approximate amount of each payments : On January? 1, Yumati Electric borrows$400,000 at an interest rate of? 6% today. What is the approximate amount of each payments
Demonstrate the likely outcomes of policy : The government is currently considering setting a maximum price (price ceiling) for basic goods to ensure that people can get access to these goods at this curr
What is the approximate amount : The parents of a recent high school graduate decide to invest the? $16,000. What is the approximate amount that would be available
Marginal propensity to consume affect the size : How will the size of the marginal propensity to consume affect the size of the multiplier and how will this impact on this fiscal policy initiative?
What average return did you earn : You invested $10,000 in large U.S. stocks at the beginning of 2016 and earned 6.0% in 2016, What average return did you earn
What is the average revenue : If the market price is 1.00, what is the Average Revenue? Place your answer in the space provided below. Assume that the firm is a price taker operating in a pe
How is populism conceptualized in the article : How is populism conceptualized in the article and What how you learned from reading the article and what would you have done differently
Calculate national savings : Use the following information to answer the question(s) that follow(s).

Reviews

Write a Review

Business Economics Questions & Answers

  Purchased using a ranking of future worth analysis

Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes.  The insulation has a life expectancy of 10 years. Determine which insul..

  Determine the firm optimal labor demand

Consider a monopsonist firm. The wage is given by, W (L) = 8 + L (per worker). The firm produces output using labor only according to the production function Y

  Problem regarding the minimum efficient scale

In the long run, given sufficient demand for their output, managers can reduce their cost of production per unit of output and increase profits by expanding the size of any given plant facility (e.g., factory, mill, shop, store, office building) t..

  Development of civil rights

What roles did the executive, the legislature, and the judiciary play in the development of civil rights? What are examples for EACH branch.

  Using demand and supply analyst

Using demand and supply analyst briefly discuss the effect of each of the following on the market for cigarettes: a cure for lung cancer is found b). The price of cigars increases. c.) Wages increase substantially in states that grow tobacco. d.) A f..

  Wholesale market for premium scotch liquor

Instruction: Do not round intermediate calculations. Round your final answers to the nearest penny (two decimal places).

  What is meant by market equilibrium

What is meant by "Market Equilibrium"? Will the market equilibrium price change in response to:

  Separation of commercial and investment banking

Consider the 1999 REPEAL of Glass-Steagall. Do you think we should REINSTATE the separation of commercial and investment banking? Why or why not?

  What is the opportunity cost of additional cups

If they currently at point B, what is the opportunity cost of 100 additional cups? if they currently at point D, what is the opportunity cost of 100 additional cups?

  Determine the eaw of the product

Using MACRS depreciation, a marginal tax rate of 42%, and an interest rate of 12%, determine the EAW of the product. (Answer: -$1512)

  What types of items are studied in discipline

What types of items are studied in discipline

  Private insurance raises issues of adverse selection

Private insurance raises issues of adverse selection and moral hazard. Consider insurance that compensates professional athletes for injuries that result in lost income. Illustrate how adverse selection could be a problem for this type of insurance. ..

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