What will the effect on the gross domestic product

Assignment Help Econometrics
Reference no: EM131290812

The relationship between income, savings, and consumption is directly related to the price level in the economy. Your research has shown that for every additional dollar of disposable income, consumers currently spend $0.75 and save the rest. Assuming an increase in investment of $1 billion dollars,

What is the Marginal Propensity to Consume?

What is the spending multiplier?

What will the effect on the Gross Domestic Product?

Assuming the price level stays the same, what will be the effect of the new investment on the aggregate demand curve?

Reference no: EM131290812

Questions Cloud

Healthcare medicare/medicaid fraud cases in history : What are the top 3 healthcare medicare/medicaid fraud cases in history?
How did you take the stakeholders into account : Where should your factory be located? Why? Who are the stakeholders in this decision? How did you take the stakeholders into account when making your decision?
Write a two pages essay about loanable fund market and risk : Write a 2 pages essay about "loanable fund market and risk" without cover page.
Principal in relation to a directive : An agent has been given authority to act for the principal in relation to a directive that sets out conditions required for the removal of life-support systems. What form of authority has the agent been given?
What will the effect on the gross domestic product : The relationship between income, savings, and consumption is directly related to the price level in the economy. Your research has shown that for every additional dollar of disposable income, consumers currently spend $0.75 and save the rest. Assu..
Definitions of new roles for leaders and systems citizens : Considering Senge's definitions of new roles for leaders and systems citizens, describe how leaders and systems citizens in your organization (WELLSTAR Health System) would operate in a "learning organization culture" such that this becomes compet..
Describe an organizational change that has failed : Describe an organizational change that has failed. What caused the failure? What would you have done differently to make it successful?
Marketing to various consumer groups : What motivates consumers to make the decisions they do? How do health care organizations market to specific groups of consumers? In this Discussion, you will explore these questions and the connection between them.
How will institutions need to change to support a transition : How will institutions need to change to support a transition? How will our perceptions and assumptions about nature and societyand energy and what is necessary for a good life need to change?

Reviews

Write a Review

Econometrics Questions & Answers

  What are the different types of unemployment

How do they affect the economy in terms of growth, labor force, and price of labor

  What policies do these countries seem to have in common

Which countries appear to have benefited the most from international trade during the last few decades? What policies do these countries seem to have in common? Does their experience lend support for the infant industry argument or help to argue a..

  Compute the corresponding angle of twist for steel

Determine the largest torque that can be safely applied to the rectangular steel bar if the maximum shear stress is limited to 120 MPa.

  How many minutes of advertising should david buy for sales

David Ding advertises on a local radio station. For the past six week, the manager has kept records of the humber of minutes of advertising that were purchased, and the sales for that week. Week 1, 2 minutes of advertising with $1,400 in sales.

  Perform a tobit regression of expenditure on your commodity

Using the CES data set, perform a tobit regression of expenditure on your commodity on total household expenditure, and compare the slope coefficient with those obtained in OLS regressions including and excluding observations with 0 expenditure on..

  What would the fed do if wanted to raise interest rates

During the summer of 1997, Congress and the president agreed on a budget package to balance the federal budget. The "deal," signed into law by President Clinton in August as the Taxpayer Relief Act of 1997, contained substantial tax cuts and expen..

  What were the tasks assigned to the world bank

what were the tasks assigned to the World Bank?

  What happens when the interest rate goes high

Assuming that the current interest rate is 3 percent, compute the value of a three year, 5 percent coupon bond with a face value of $1,000. What happens when the interest rate goes to 4 percent What happens when the interest rate goes to 2 percent

  How cars be allocated over two routes in order to minimize

Commuters from the West Bank, across from New Orleans, are identical. They have two routes from the West Bank to Uptown, either over the Crescent City Connection (C) or over the Huey P. Long Bridge (H).

  Explain what is your discrete random variable

Explain what your Discrete Random Variable is and what probability distribution can be used to describe it. Give some examples and interpretation of the usage of the probability distribution function and outline its business relevance.

  Which summarizes the impact of the governments policy

Suppose that the government cuts net taxes by $10 billion. These are lump sum taxes. To keep its budget balanced at its current level, it also reduces its spending by $10 billion. Which  summarizes the impact of the government's policy action on eq..

  What is the marginal cost and average total cost for firm

Below is a table with total data for a firm in a perfectly competitive industry. Quantity Total Cost 0 100 10 220 15 300 20 360 25 450 30 600 35 770 40 960 What is the marginal cost and average total cost for the firm at each level of output

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