What is the change in public savings

Assignment Help Business Economics
Reference no: EM131236816

If taxes increase by $500 and the MPC is 0.8, what is the change in consumption and private savings? What is the change in public savings? what is the change in total savings? What is the change in investment?

Reference no: EM131236816

Questions Cloud

Primary characteristics of relationship include mutuality : The primary characteristics of a “relationship” include mutuality, interaction, iterative nature, ongoing benefit, change in behavior, uniqueness, and trust. Think about a company with which you have a strong relationship. How are each of these attri..
Highly competitive industry such as online advertising : Please analyze a current events article that deals with a highly competitive industry such as online advertising. Your analysis should include the factors driving change in the industry. Decide if there are potential changes due to globalization or t..
Marginal benefit is defined : Marginal benefit is defined as:
Substitute flying for driving to their vacation destinations : A study found that lower airfares led some people to substitute flying for driving to their vacation destinations. This reduced the demand for car travel and led to reduced traffic fatalities, since air travel is safer per passenger mile than car tra..
What is the change in public savings : If taxes increase by $500 and the MPC is 0.8, what is the change in consumption and private savings? What is the change in public savings? what is the change in total savings? What is the change in investment?
Calculators cigarettes caviar legal services : Which of the following goods are likely to be classified as normal goods or services? Inferior? Defend your answer. Beans Tuxedos Used cars Used clothing Computers Books reviewed in The New York Times Macaroni and cheese Calculators Cigarettes Caviar..
What is future worth of series of equal? year-end deposits : What is the future worth of a series of equal? year-end deposits of $3,000 for 13 years in a savings account that earns 12?% annual interest if the following were? true?  All deposits are made at the end of each? year? All deposits are made at the be..
Company could produce high and low quality good : Suppose a company could produce a high and low quality good. Each consumer can buy a high quality good (with quality exogenously given as s2), a low-quality good (with quality s1), or no good. In other words, each consumer makes, at most, one purchas..
What would his contract be worth at the time he signs? it : A local newspaper headline? blared, "Bo Smith Signed for? $30 Million." A reading of the article revealed that on April? 1, 2014, Bo? Smith, the former? record-breaking running back from Football? University, signed a? $30 million package with the Da..

Reviews

Write a Review

Business Economics Questions & Answers

  What is the profit-maximizing price of e-books relating

The company has determined that it would earn zero economic profits if price were equal to average total cost, and in this case it could sell 20,000 copies. In the short run, what is the profit-maximizing price of e-books relating to do-it-yourself..

  Explain the impact of each of upon commercial bank reserves

Explain the impact of each of the following upon commercial bank reserves: (a) the Federal Reserve sells government bonds in the open market to private buyers;

  In the monetary intertemporal model

In the monetary intertemporal model, show that it is possible to have an equilibrium in which money is not held and only credit cards are used in transactions. What condition does the equilibrium price of credit card services must meet? Does monetary..

  Explain role of technology in evolution of money

Explain role of technology in evolution of money is used by consumers. Explain illustrate what has happened to velocity of money because of technology.

  The lunch you buy in your school cafeteria

The lunch you buy in your school cafeteria is classified as: a) a consumer durable. b) a consumer nondurable. c) a service. d)either a consumer nondurable or a service because it fits into both categories.

  What circumstances would bob be likely to buy bonds

A month later, Bob buys a $1000 government bond from the Fed with this money. A) What happens to the money supply (M1)? Does it increase or decrease? By how much? The money supply decreases by $1000. B) How would this impact Bob's future spending? Un..

  She needs to do methodologically to make a stronger case

Explain your reasoning also explain Illustrate what she needs to do methodologically to make a stronger case.

  Monetary easing and some attempt at structural reform

Abenomics seems to me like a straightforward and modern plan of economic revelation through monetary easing and some attempt at structural reform. While it's still early, it looks like many of the predicted effects of this approach have begun to mate..

  Suppose the own price elasticity of demand for good

Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will chang..

  Merit goods have received considerable attention

Merit goods have received considerable attention. Can concerts and other publicly provided services be rationalized using these ideas.

  Using aggregate supply and aggregate demand diagrams

Using aggregate supply and aggregate demand diagrams, illustrate each of the following situations: When will expansionary monetary policy reduce unemployment, but have little effect on inflation? When will contractionary monetary policy reduce inflat..

  Balance of trade in merchandise account

Which of the following will be recorded as a credit entry in the U.S. balance of trade in merchandise account?

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