FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The tax cuts of 2017 increased the 2018 disposable income of households by roughly $200 billion. If the MPC were 0.8. Instructions: Enter your responses

image text in transcribed
image text in transcribed
The tax cuts of 2017 increased the 2018 disposable income of households by roughly $200 billion. If the MPC were 0.8. Instructions: Enter your responses as a whole number. a. how much of this windfall was initially saved? $ billion b. how much AD stimulus resulted over time after all multiplier effects? $billion

Step by Step Solution

There are 3 Steps involved in it

Step: 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

Step: 3

blur-text-image

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 and Organizational Architecture

Managerial Economics and Organizational Architecture

Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr

5th edition

73375829, 978-0073375823

More Books

Students also viewed these Economics questions

Question

★★★★★
Extensible business reporting language (XBRL) is a financial reporting system that allows a company to "tag" each piece of financial information as it is input into the company's books of account....

Answered: 1 week ago

Question

★★★★★
What is the real rate of interest of discounting the bill of exchange in Question 45.1? Data from Question 45.1 (a) If you were lent 17,000 for 64 days at 6 per cent, how much interest would you pay?...

Answered: 1 week ago

Question

★★★★★
What do you like most about the organization?

Answered: 1 week ago

Question

★★★★★
Consider a bull spread where you buy a 40-strike call and sell a 45-strike call. Suppose S = $40, = 0.30, r = 0.08, = 0, and T = 0.5. Draw a graph with stock prices ranging from $20 to $60...

Answered: 1 week ago

Question

★★★★★
A withdrawal by the owner was posted to an expense report. This error would cause: A. assets to be overstated B. liabilities to be understated C. withdrawals to be overstated D. expenses to be...

Answered: 1 week ago

Question

★★★★★
A trial balance will not balance if Select one: O a. a journal entry is posted twice. O b. a wrong amount is used in journalizing. O c. incorrect account titles are used in journalizing. O d. a...

Answered: 1 week ago

Question

★★★★★
3.Fresh Foods wants to decrease the total cost of guava. Identify three costs areas - other than price - that Fresh Foods to focus on to decrease total cost. Explain why you choose those cost areas....

Answered: 1 week ago

Question

★★★★★
i.Suggest at least THREE (3) kinds of analytics and machine learning algorithms that Champo Carpets can use to solve their problems, and in general, for value creation. ii.Explain the data strategy...

Answered: 1 week ago

Question

★★★★★
While traveling on an assignment that is being paid for by your employer, you visit an area in which you would really like to live but can never find time to visit on your own. You have five days to...

Answered: 1 week ago

Question

★★★★★
5. Case Study 2. Gojek and Grab Strategy The case study below explains that there are 2 industries that provide on-demand services, Gojek and Grab. Both are fiercely competitive in the same market in...

Answered: 1 week ago

Question

★★★★★
Why Co-Branding is an important strategy for the marketers? How does it work? Discuss with the help of some examples. How you can differentiate between brand extension and line extension? Discuss...

Answered: 1 week ago

Question

★★★★★
a) 95% percent interval b) test statistic t Females of many animals can recognize their own offspring by voice. But how long does this vocal memory last? Briefer et al. (2012) tested the responses of...

Answered: 1 week ago

Question

★★★★★
6. It is what the person has previously done for the group that is the deciding factor.

Answered: 1 week ago

Question

★★★★★
3. It is the commitment you show that is the deciding factor.

Answered: 1 week ago

Question

★★★★★
4. It is the principle of equality (according to very specific criteria of equality) that is crucial.

Answered: 1 week ago

Previous Question Next Question