Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 05, 2020

Question 6 (3 marks) Consider economy A. It has a marginal propensity to save out of disposable income of 0.60, a marginal propensity to

Question 6 (3 marks) Consider economy A. It has a marginal propensity to save out of disposable income of 0.60, a marginal propensity to import of 3.25 percent, and a net tax rate of 0.045. Calculate the magnitude of the multiplier.

Step by Step Solution

★★★★★

3.49 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

Answer k 1476 Soluti... 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

Step: 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

Essentials of Economics

Authors: Bradley Schiller, Karen Gebhardt

10th edition

125923570X, 978-1259235702

More Books

Students also viewed these Economics questions

Question

★★★★★

A country has a marginal propensity to save of 0.15 and a marginal propensity to import of 0.4. Real domestic spending now decreases by $2 billion. a. According to the spending multiplier (for a...

Answered: 1 week ago

Question

★★★★★

Suppose the marginal propensity to save is given by and national consumption is $6.6 billion when disposable income is $0. Find the national consumption function. dS 0.25 0.22 - dy V0.5y + 1 0.5

Answered: 1 week ago

Question

★★★★★

Suppose that the marginal propensity to save is dS/dy = 0.15 and that consumption is $5.15 billion when disposable income is $0. Find the national consumption function.

Answered: 1 week ago

Question

★★★★★

Instructions In simplified form, you are going to be producing a script. The script will create 2 tables, load the 2 tables with data and then using PL/SQL it will process those 2 tables and with 2...

Answered: 1 week ago

Question

★★★★★

Show that the square of an even number is an even number using a direct proof.

Answered: 1 week ago

Question

★★★★★

Each of the following reactions has been reported in the chemical literature and gives a single organic product in high yield. Write the structure of the product for each reaction. (a)...

Answered: 1 week ago

Question

★★★★★

Suppose that A1, A2, and B are three events on a sample space and P(B) > 0. If A1 and A2 are independent, then P(A1A2|B) = P(A2|B)P(A2|B).

Answered: 1 week ago

Question

★★★★★

Krey Distributing Company completed these merchandising transactions in the month of April. At the beginning of April, the ledger of Krey showed Cash of $10,000 and Common Stock of $10,000. Apr. 2...

Answered: 1 week ago

Question

★★★★★

Please answer number 2 with commands FL20 ITNW3101 INDIVIDUAL Term Project (20 Marks) Each Student should develop this project by using packet tracer. LOO Area 1 Ibri Router 2 Area 2 LANA Link A WANA...

Answered: 1 week ago

Question

★★★★★

Reynolds Printing Company specializes in wedding announcements. Reynolds uses an actual job-order costing system. An actual overhead rate is calculated at the end of each month using actual direct...

Answered: 1 week ago

Question

★★★★★

For June, Vaughn Manufacturing estimated sales revenue at $600000. It pays sales commissions that are 4% of sales. The sales manager's salary is $295000, estimated shipping expenses total 1% of...

Answered: 1 week ago

Question

★★★★★

1. Discuss common MLM ( Multi-Level Marketing) practices and the impact on stakeholders: Claims about income potential Transparency, or lack of transparency, about income Inventory purchase...

Answered: 1 week ago

Question

★★★★★

Install DHCP role on your Server 2019 VM (10 points) Create a scope (10 points) Configure the pool of addresses (10 points) Configure the DHCP to hand out the domain name to clients (10 points)...

Answered: 1 week ago

Question

★★★★★

1. Reynolds Transport Theorem is given as follows DB Dr L [ pb d + [ pb V d4 dA a. Derive the Continuity equation in integral form (4 P) b. Derive the Momentum equation in integral form (8P) c. List...

Answered: 1 week ago

Question

★★★★★

Q1. You have been appointed as an accountant of M.K. Industries a company formed by Mr Mutiso and Mr K.Kyalo to manufacture cooking fats for sale. While reviewing the accounting records of the...

Answered: 1 week ago

Question

★★★★★

Task 9: Developing a first-aid emergency procedure 9 Based on the scenario only, what would your priorities be in any emergency first-aid procedure that you develop for the surgery?

Answered: 1 week ago

Question

★★★★★

A stock had annual returns of 8 percent, 14 percent, and 2 percent for the past three years. Based on these returns, what is the probability that this stock will earn at least 20 percent in any one...

Answered: 1 week ago

Question

★★★★★

Suppose the spot and six-month forward rates on the Norwegian krone are Kr 5.78 and Kr 5.86, respectively. The annual risk-free rate in the United States is 3.8 percent, and the annual risk-free rate...

Answered: 1 week ago

Question

★★★★★

What will the real value of $100 be in 10 years if you hide the money under your mattress and the inflation rate is: (a) 0% (b) 2% (c) 8%

Answered: 1 week ago

Question

★★★★★

Should economic policies respond immediately to any changes in reported unemployment or inflation rates? When should a response be undertaken?

Answered: 1 week ago

Question

★★★★★

Outline a macro policy package for attaining full employment and price stability in the next 12 months. What obstacles, if any, will impede attainment of these goals?

Answered: 1 week ago

Question

★★★★★

Table 20P-4 shows an economys GDP, current expenditures, and tax revenue for 20132016. a. Complete the table by filling in the prior-year debt for each year listed. b. For each year, is this economy...

Answered: 1 week ago

Question

★★★★★

For each of the scenarios below, determine whether you think it is likely that an employer could be discriminating against a person because of his or her age. Explain why or why not. a. A young...

Answered: 1 week ago

Question

★★★★★

Some economists have studied the effects of lookism, or discrimination based on how attractive a person is. Give an example of a case in which the market might encourage lookism and an example of a...

Answered: 1 week ago

Previous Question Next Question