If autonomous expenditures increased by $20 billion, what is the change in aggregate demand at a given

Question:

If autonomous expenditures increased by $20 billion, what is the change in aggregate demand at a given price level if the marginal propensity to consume is 0.75?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Exploring Economics

ISBN: 9781544336329

8th Edition

Authors: Robert L. Sexton

See More Books

Question Posted: Jan 20, 2023 01:37 AM

See More Questions

If autonomous expenditures decreased by $50 billion, what is the change in aggregate demand at a given price level if the marginal propensity to consume is 0.8?
What is the change in entropy of 1.00m3 of water at 0oC when it is frozen to ice at 0oC?
What is the change in entropy of mercury vapor (Lv = 2.7 x 105 J/kg) when 0.50 kg of it condenses to a liquid at its boiling point of 357 oC?
Sketch a graph to illustrate your idea of each of the following relationships. Be sure to label each axis appropriately. For each relationship, explain under what circumstances, if any, the curve...
The Food and Drug Administration (FDA) reported the number of new drugs approved over an eight-year period (The Wall Street Journal, January 12, 2004). Figure 1.9 provides a bar chart summarizing the...
What can be predicted when you know that a work team is highly cohesive? (a) high-performance results (b) high member satisfaction (c) positive performance norms (d) status congruity
Describe the characteristics and advantages of letter of credit as a payment method in exporting. LO.1
Shiloh Acres sponsors a defined-benefit pension plan. The corporations actuary provides the following information about the plan. The average remaining service life per employee is 10 years....
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the...
Would it be possible for some consumption expenditures to be autonomous and other parts of consumption expenditure not to be autonomous?
If autonomous expenditure rises and the marginal propensity to consume rises, what would happen to equilibrium income?
If z = x 2 - xy + 3y 2 and (x, y) changes from (3, -1) to (2.96, 20.95), compare the values of Dz and dz.
The table 1 below is shown the production theory of labour for company D'LIMAU Sdn Bhd. Input X Input Y Total Product (TP/Q) 1 0 0 1 1 20 1 2 80 1 3 180 1 4 230 1 5 270 1 6 270 1 7 210 Average...
Describe the most important three rights in the Bill of Rights of the United States Constitution. The Bill of Rights is the first ten amendments to the Constitution, but they contain far more than...
A red/white wine-tasting party will be held in the school in April, and the theme of the event will be formulated based on the season (April), place (Ontario/Canada), and target participants. Please...
We explored many of the revenue streams available to fund fire prevention practices. Describe one revenue stream and explain why you feel it is the most important in supporting fire prevention...
Multi-national management in a global economy requires a variety of hard and soft skills. This assignment is meant to enhance the understanding of multi-national situations locally or globally, and...
Visit the website for Federation of Tax Administrators (www.taxadmin.org) under the Taxpayers & Tax Preparers menu, and use the State Tax Agencies link to go to the Illinois Department of Revenue...
a. What is the cost of borrowing if Amarjit borrows $28 500 and repays it over a four-year period? b. How many shares of each stock would he get if he used the $28 500 and invested equally in all...
Using data from the Federal Reserve Bank of St. Louis (FRED) (fred.stlouisfed.org), analyze the effect of a decline in exports on GDP. a. Download data since 1990 on real exports of goods and...
How is reaching macroeconomic equilibrium different from reaching the equilibrium in the market that you saw in Chapter 3, Section 3.3?
This chapter described the multiplier as (1 / (1 2 MPC)). However, many important variables, including the price level and interest rates, are held constant in arriving at this equation. In one...
Break-Even Sales and Sales to Realize Income from Operations For the current year ending October 31, Yentling Company expects fixed costs of $537,600, a unit variable cost of $50, and a unit selling...
You buy a stock for $35 per share. One year later you receive a dividend of $3.50 per share and sell the stock for $30 per share. What is your total rate of return on this investment? What is your...
Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000) is different from the actual amount incurred ($225,000). Ending balances in the...

If autonomous expenditures increased by $20 billion, what is the change in aggregate demand at a given

Question:

Step by Step Answer:

AD would increase by ...View the full answer

Exploring Economics

Students also viewed these Business questions