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For a hypothetical economy in a given year, consumption equaled $575, investment equaled $225, government spending equaled $175, exports equaled $65, and imports $59. Write
- For a hypothetical economy in a given year, consumption equaled $575, investment equaled $225, government spending equaled $175, exports equaled $65, and imports $59. Write out the formula used. What is the value of GDP?
- What's the value of the National Saving level? Show the formula used.
- If marginal propensity to consume is 0.8 and disposable income increases by 0.5 trillion dollars, by how much will consumption expenditure change?
- We know that marginal propensity to consume is 0.8, now calculate the GDP multiplier effect.
- Explain the crowding-out effect from the high US Federal debt.
- What may happen to important domestic programs in the future?
- The house is currently discussing another stimulant bill of near 1 trillion dollars. Should congress pass should a funding bill?? Explain.
- Discuss the role of money over time.
- Explain why the US adopted the use of Fiat money.
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins
5th Edition
0078110866, 978-0078110863
