Suppose the government increases its purchases

Assignment Help Business Economics
Reference no: EM13773934

Suppose the government increases its purchases by $1,200 while holding the money supply constant. The change in aggregate demand resulting from an increase in government purchases if the government allows interest rates to adjust (as compared to the change if it were to hold them constant) will be

larger.

the same.

smaller but still positive.

negative.

Reference no: EM13773934

Questions Cloud

Process of a program development : Summarize the process of a program's development based on the program scenario you have used throughout the course from Appendix B.
Complication of pregnancy : Mayo Clinic researchers discover link between high levels of HtrA1 protein and preeclampsia, a complication of pregnancy.
What main issues or problems arise in translating the bible : Tranlslation: Using the reading on the syllabus pertaining to Biblical translations, what main issues or problems arise in translating the Bible?
Example of an automatic stabilizer : Which of the following is an example of an automatic stabilizer? When the economy goes into a recession,
Suppose the government increases its purchases : Suppose the government increases its purchases by $1,200 while holding the money supply constant. The change in aggregate demand resulting from an increase in government purchases if the government allows interest rates to adjust (as compared to the ..
Why the coca-cola company choose to protect its soft drink : Describe two (2) reasons why The Coca-Cola Company would choose to protect its soft drink formula as a trade secret, as opposed to using another form of intellectual property protection (for example, a patent)
How large is the increase in aggregate demand : With the economy in a recession because of inadequate aggregate demand, the government increases its purchases by $1,200. Suppose the central bank adjusts the money supply to hold the interest rate constant, investment spending is fixed, and the marg..
The federal reserves target rate for the federal funds rate : The Federal Reserve’s target rate for the federal funds rate
What are your unstated norms : What are your unstated norms? What is the effect of these unstated assumptions? Why does it matter that they are unstated

Reviews

Write a Review

Business Economics Questions & Answers

  Condemned utilitarianism as an immoral ethical theory

The German philosopher Immanuel Kant condemned Utilitarianism as an immoral ethical theory mainly because:

  Sketch graph and what are marginal benefits

The marginal damages(costs) associated with that function are MD=2Q+2. Sketch a graph what the marginal benefits and marginal damage curves.

  Many rounds of golf also games of curling will seignior

Elucidate how many rounds of golf also games of curling will Seignior Cruz play in a week. Give an economic interpretation for the value of the Lagrangian Multiplier.

  Equilibrium level of income

Starting with the situation in part d, suppose the government starts taxing the population $30 each year without spending anything.

  Morning coffee with milk

Sheila budgets $9 per week for her morning coffee with milk. She likes it only if it is prepared with 4 parts of coffee and 1 part milk.

  Drilling rig will belong to the firm

Xon, a small oil equipment company, purchased a new petroleum drilling rig for $1,800,000. Xon will depreciate it using MACRS depreciation. The drilling rig has been leased to a firm, which will pay Xon $550,000 per year for 8 years.

  Illustrate what effect with this have on its optimal price

Which corporation's settlement obligations are expected to raise its standard total cost per pack by about $.60. Illustrate what effect with this have on its optimal price.

  A tax that results in a larger fraction

A tax that results in a larger fraction of income being paid in taxes as income rises is a ________ tax.Answer  regressive  head  progressive  proportional

  Best affordable bundle if your travel preferences

Find out your best affordable bundle if your travel preferences are such that you require exactly

  Do you agree or disagree. explain your answer.

Many argue that breaking up a monopoly is a Pareto-efficient change. This interpretation cannot be so because breaking up a monopoly makes its owners (or share holders) worse off. Do you agree or disagree. Explain your answer.

  Explain how might knowledge of organizational behavior help

Explain how might knowledge of organizational behavior help the company's frontline store supervisors manage their employees.

  Experience gains from trade

South Korea can produce a maximum of 600 million toaster ovens or 900 million tons of rice per year. The U.S. can produce a maximum of 700 million toaster ovens or 1,000 million tons of rice per year.

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