The marginal propensity to import

Assignment Help Business Economics

Reference no: EM131098641

In an open economy, if only the demand for consumption and imports are dependent on income and the marginal propensity to consume is the same as the marginal propensity to import, the multiplier will be:

(a) Equal to 1 if there is lump-sum tax and less than 1 if the tax is proportional;

(b) Equal to 1 if there is a proportional tax and greater than 1 if there is a lump-sum tax;

(d) Equal to 1 if there is a proportional tax and less than 1 if there is a lump-sum tax.

Reference no: EM131098641

Questions Cloud

Imports are directed exclusively to investment : The only change which happened between the previous and the current year is that while in the previous year all of the 100 million worth of imports were used for consumption, now all imports are directed exclusively to investment . Therefore this wil..

Write a summary and analysis of the pelican chorus : The Pelican Chorus by Edward Lear. Write a summary and analysis in simple English, please

Inventory levels are unchanged : If prices are rising and a company’s inventory levels are unchanged, the use of fifo rather than lifo for inventory valuation will tend to result in the current period in a: higher income tax expense, b: lower gross profit percentage, c: lower ending..

Information needed to perform the process : In preparation for the Stage 2 assignment, please list some inputs to the process (things or information needed to perform the process) and outputs of the process (things or information that result from the process),

The marginal propensity to import : In an open economy, if only the demand for consumption and imports are dependent on income and the marginal propensity to consume is the same as the marginal propensity to import, the multiplier will be:

An increase in the rate of proportional tax will affect : An increase in the rate of a proportional tax will affect the IS schedule (relative to the current position) in the following way:

Discussion of vulnerabilities : The paper should include the features of secure e-mail and how secure e-mail works. Include a discussion of vulnerabilities involved in e-mail and how they can be countered. The presentation should include the following:

Monopolistic firm faces the demand curve : A monopolistic firm faces the following demand curve. What price should this monopoly charge to maximize its profit? What would be its equilibrium profit? What price should it charge if it were to maximize its revenue? What is the break-even quantity..

Oral testimony concerning representations of its agent : Ann bought a car from the Used Car Agency (Used) under a written contract. She purchased the car in reliance on Use's agent's oral representations that it had never been in a wreck and could be driven at least two thousand miles without adding oil..

User Account

All Pages