What is carl mpc

Assignment Help Macroeconomics
Reference no: EM132655346

Assume that Carl and Wanda each make $40,000. Each was given a raise of $4,000. Carl's spending increased from $40,000 to $43,000. Wanda's savings increased from $1,000 to $2,000.

1. Carl lives in the Macro Islands. What is Carl's MPC? Wanda lives in the Micro Islands. What is Wanda's MPS?

2. When businesses in the Macro Islands increased investment by $30 million to attract tourists, GDP increased by $300 million. Calculate the MPC in the Macro Islands?

3. Assume taxes increase by $300 and government spending increases by $300. The marginal propensity to consume is 0.75. Calculate the total change GDP.

4. If equilibrium output rises by a total of $400 billion in response to an increase in government spending of $80 billion, what is the marginal propensity to consume?

Reference no: EM132655346

Questions Cloud

Compute Zola gross income : Simba received $80,000 of salary and $1,200 of taxable dividends on stock he purchased in his name. Compute Zola gross income
Find out adjustment for inflation : You have just read an explanation of the figures you studying as the total dollar value of final goods and services produced within a country
Management adopted restructure strategy : Discuss the underlying reasons why the top management adopted a restructure strategy. What did the top management actually do in that restructure strategy?
Define heuristic : Define heuristic. Give an example from your personal or work life where you would use each of them, explaining why each is appropriate to situation.
What is carl mpc : Assume that Carl and Wanda each make $40,000. Each was given a raise of $4,000. Carl's spending increased from $40,000 to $43,000.
Christian faith impacts marketing management : Discuss how Christian faith impacts marketing management decisions in the selected organization,
Compute a 3-year moving average : Compute a 3-year moving average, plot it as a dotted line, and use it to forecast shipments in year 12.
The market on similar products or services : Firms within an industry compete in the market on similar products or services (i.e. automobile manufacture, Online services, etc.).
What is meant by the term crowding out : Assume that an economy is experiencing simultaneous equilibrium in both the product market and money market. Furthermore, assume the MPC is currently around

Reviews

Write a Review

Macroeconomics Questions & Answers

  Tax on business inventories

1. If saving dropped sharply in the economy, what would likely happen to investment? Why?

  Interest on company-issued bonds

Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel,

  If the cost of a substitute product increases

If the cost of a substitute product increases, which of the following is most likely to happen in the market for the product under consideration in the short run.

  Explain how to describe price elasticity of demand

Explain how to describe price elasticity of demand. What are the factors that affect price elasticity of demand.

  Windows nt server computer

What you do to create a printer tool containing four shared printers on ur Windows NT server computer?

  Availability of investment capital

Explain how this investment capital is transformed into fixed capital goods, new technology, and cost reduction using new methods of production. Also, explain how interest rates impact the availability of investment capital.

  Financial statements the davidson corporations balance

financial statements the davidson corporations balance sheet and income statement are provided here. davidson

  Make a supply and demand graph for digital cameras

Over the past 3-years, as the result of reducing values for digital cameras, the price of developing traditional 35mm film has increased 5 percent yearly.

  Define asignificant substitution effect

A friend mentions to you that the campus coffee shop offers a 10% discount each Thursday morning before 10 a.m. Is this more likely to cause a significant.

  What is the policy most banks follow

What is the policy most banks follow when customers seek to access their notice deposits?

  Fdic insured savings account

(a) If the family own no other assets than this house, what is the expected value of their asset? (b) If the family had $25,000 sitting in a FDIC insured savings account, what would the expected value of their assets be? (c) If this family was of..

  Statement related to labor and wage theory

Suppose a frost kills a large portion of an orange crop, with a resulting higher price of oranges. It has been said that such an increase in price benefits no one since it cannot elicit a supply response; the higher price, it is said, simply "line..

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