What is the approximate change in the economic impact

Assignment Help Financial Management

Reference no: EM131593442

1. Suppose that with a $350 billion stimulus package the spending rate increases from r = 0.3 to r = 0.35. What is the approximate change in the economic impact?

2. Suppose that with a $350 billion stimulus package the spending rate increases from r = 0.8 to r = 0.85. What is the approximate change in the economic impact?

3. Compare the results of Steps 12 and 13. Notice that the change in the spending rate is the same (?r = 0.05) in both cases. Is the change in the economic impact greater when r is small or large?

Reference no: EM131593442

Questions Cloud

Discuss recruiting in a global workplace : What are some of the key factors to consider when recruiting in a global workplace

Explain why this combination would be impossible : If "free" land means land that is in excess supply-and therefore has a zero price-and "free" labour means labour that is free of bondage.

Quantity of real gdp demanded : Discuss the difference between an increase in the aggregate demand curve and an increase in the quantity of real GDP demanded.

Indicate pension amounts reported in financial statement : Gottschalk Company sponsors a defined benefit plan for its 100 employees. On January 1, 2014, the company's actuary provided the following information.

What is the approximate change in the economic impact : What is the approximate change in the economic impact?

Support your idea with illustrative examples : What are some things that you believe can be done to reduce crime in our society? Be sure to support your idea with illustrative examples

Is it possible to speak of ethnic groups in america : Is it possible to speak of ethnic groups in America in terms other than stereotypes

What does the forecast of supply and demand : What does the forecast of supply and demand for the long-term care industry look like for the next 25 years and how should that impact decision making?

Calculate the present value of this decreasing annuity : Calculate the present value of this decreasing annuity.

User Account

All Pages