Suppose the MPC is 0.80. By how much must investment spending increase for GDP to go up
Question:
Suppose the MPC is 0.80. By how much must investment spending increase for GDP to go up $50 billion?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
The multiplier is 4 102...View the full answer
Answered By
Arun kumar
made more than four thousand assignments
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
1. In our simple model, if C = 100 + 0.8y, and I = 50, equilibrium output will be ______. 2. If in Exercise 3.1 I increase to 100, a. The equilibrium income will be ______. b. The multiplier is...
-
1. An increase in the price level will GDP and thereby move the economy the aggregate demand curve. 2. At any price level, the income-expenditure model determines the level of equilibrium output and...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Carl contributes equipment with a $50,000 adjusted basis and an $80,000 FMV to Cook Corporation for 50 of its 100 shares of stock. His son, Carl Jr., contributes $20,000 cash for the remaining 50...
-
What are the specific policies and operating practices that Nucor has employed to implement and execute its low-cost provider strategy?
-
In Problem are there unique values of a, b, and c that make P a transition matrix? If so, complete the transition matrix and draw the corresponding transition diagram. If not, explain why. A B A.2 C...
-
What is Indias balance on goods, services, and income? Use the following balance of payments data for India from the IMF to answer this problems. Assumptions (millions of US$) 2000 2001 2002 2003...
-
The Piedmont School of Music has hired you as a consultant to help in analyzing the behavior of the schools costs. Use the account-classification method of cost estimation to classify each of the...
-
The table below gives the population of Texas since 1970: Year Population 1970 1980 1990 2000 2010 (in millions) 11.2 14.2 17.0 20.9 25.1 A. Find the average rate of change for each decade. B. During...
-
This question illustrates the accelerator effect. Let WQ equal the number of widgets consumed in a year. Every 1,000 widgets require a widgetmaking machine to produce them. Let WMMQ be the number of...
-
Suppose the MPC is 0.6. If at each level of income, people want to consume $4,000 more, how will income change? How will consumption change (break C s change into its initial autonomous increase and...
-
What are permanent and temporary accounts? What is the relationship between them?
-
Consider Country Z's aggregate demand which comprises four sectors (i.e., households, firms, government, and foreign trade). The following equation represents the country's equilibrium output and...
-
As a quality manager , you will be continuously reviewing your facility against best practices and benchmarks in the industry. What are some key indicators used in health care to determine quality?...
-
3. Consider the following class definition and write an appropriate Java program according to the definition and output the result. public class Children [String name; int friends; public...
-
A monopolist has total costs TC(Q) = 32 + 10Q and faces market demand Q(P) = 40-2P. Solve for monopolist's output, price, profits and consumer surplus when: (a)(5 pts) Price is unregulated. (b)(5...
-
The contribution margin ratio of Kuck Corporation's only product is 62%. The company's monthly fixed expense is $455,000 and the company's monthly target profit is $41,000. Required: Determine the...
-
As a general guideline, when should present value analysis be used?
-
The pendulum consists of two rods: AB is pin supported at A and swings only in the y-z plane, whereas a bearing at B allows the attached rod BD to spin about rod AB. At a given instant, the rods have...
-
Discuss the following statement: In a perfectly competitive market, in the long run consumers benefit from reductions in costs, but firms dont. Dont firms also benefit from cost reductions because...
-
Some professions, like hair cutting or hair braiding, are fairly close to perfectly competitive. These professions sometimes succeed in getting the government to establish licensing requirements that...
-
An article in the Wall Street Journal discussed the sidewalk vegetable stands in New York Citys Chinatown. About 80 of these small vegetable stands operate along a handful of streets in that...
-
ABC Corporation acquires a new piece of equipment for $50,000 and uses it in ABC's manufacturing operations. A few months after ABC places the machine in service, it discovers that the equipment is...
-
Marbry Corporation has provided the following information concerning a capital budgeting project: After-tax discount rate 9% Tax rate 30% Expected life of the project 4 Investment required in...
-
5. On September 1, 2023, Oriole Corportation received 58800 cash from a tenant for one year's rent in advance and recorded the transaction with a credit to rent Revenue. The December 31, 2023,...
Study smarter with the SolutionInn App