Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The government gives stimulus checks of $1000 to 100 million families in the United States. Each of these families spends 80% of their check this

The government gives stimulus checks of $1000 to 100 million families in the United States. Each of these families spends 80% of their check this year and uses the rest to buy stock in the stock market. Assuming no other changes in the spending of these families and that the goods they purchased were entirely produced in the United States, how would the stimulus checks affect US GDP?

Step by Step Solution

3.28 Rating (148 Votes )

There are 3 Steps involved in it

Step: 1

Impact of Stimulus Checks on US GDP This scenario involves two distinct economic effects on US GDP 1 ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics

Authors: Mark Hirschey

12th edition

9780324584844, 324588860, 324584849, 978-0324588866

More Books

Students also viewed these Economics questions

Question

=+b) Find the standard deviations.

Answered: 1 week ago

Question

Give codons for the following amino acids: (a) Th (b) Asp (c) Thr

Answered: 1 week ago