What change in investment would account for propensity

Assignment Help Econometrics

Reference no: EM13242856

The marginal propensity to consume and the marginal income tax rate are 0.9 and 1/3, respectively. The budget deficit is observed to increase by 90.

a. What change in investment would account for this?

b. What change in government spending would account for this?

Reference no: EM13242856

Questions Cloud

Describe your unique selling proposition usp : Market research and consider what distinguishes your company from your competitors, their products, and / or the price of their products and services.

Explain the long-run outcome of the policies : Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policy to try to achieve the lower rate.

Discuss perfect competition and long-run equilibrium : Discuss perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings. Additionally, how does the proliferation of global trade and competition contribute to markets moving

Can compensation really be a source of competitive advantage : Three tests for any source of competitive advantage are align, differentiate, and add value. Discuss whether these tests are difficult to pass. Can compensation really be a source of competitive advantage?

What change in investment would account for propensity : The marginal propensity to consume and the marginal income tax rate are 0.9 and 1/3, respectively. The budget deficit is observed to increase by 90. a. What change in investment would account for this

By how much should government spending increase : The marginal propensity to consume is 0.80. The income tax is equal to one-fourth of income. If the government decides to increase spending in order to increase output by Php 900

Developing and integrating a set of standard control process : Developing and integrating a set of standard control processes for both planning and execution will raise success rates.

African countries which escaped colonization : What are the two african countries which escaped colonization? explain why and how they succeeded?

Compute the spacetime interval s between the events : Frames S and S' are moving relative to each other along the x and x' axes. They set their clocks to t = t' = 0 when their origins coincide, Compute the spacetime interval ?s between the events

User Account

All Pages