Suppose that a certain country has an MPC of .9 and a real GDP of $400 billion.
Question:
Suppose that a certain country has an MPC of .9 and a real GDP of $400 billion. If its investment spending decreases by $4 billion, what will be its new level of real GDP?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
The multiplier is 10 o...View the full answer
Answered By
Deepak Pal
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
Question Posted:
Students also viewed these Economics questions
-
Suppose that a certain country has a current account surplus. Does this mean that the country will necessarily have a financial account deficit? Explain why or why not.
-
Suppose that a certain large population contains k different types of individuals (k 2), and let i denote the proportion of individuals of type i, for i = 1, . . . , k. Here, 0 i 1 and 1 + . . . +...
-
Suppose that a certain biologically important reaction is quite slow at physiological temperature (37 oC) in the absence of a catalyst. Assuming that the collision factor remains the same, by how...
-
Northland Corporation is a small information-systems consulting firm that specializes in helping companies implement standard sales-management software. The market for Northalndss services is very...
-
Suppose that Yt = ut, where ut is i.i.d. N(0, 1), and consider the regression Yt = βXt + error, where Xt = Yt+1 and error is the regression error. Show that o- 1).
-
For the current annual reports of Samsung and Apple, assume they report the following. Required 1. Compute the recent two years days sales in raw materials inventory for (a) Samsung (b) Apple. 2. Is...
-
Question: The stock market crash of 1929 and the Great Depression that followed were caused in part because so many investors blindly put their money into stocks they knew nothing about. During the...
-
Complete Keith's tax return including all required schedules and forms using prince edward island as province, using the fillable forms package. Taxpayers Information Taxpayer #1 Name: Keith Dox...
-
How would I get the solution to this problem?. Sandhill Company's chart of accounts includes the following selected accounts. 101 Cash 401 Sales Revenue 112 Accounts Receivable 414 Sales Discounts...
-
Moab, Inc. manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this...
-
Depict graphically the aggregate expenditures model for a private closed economy. Now show a decrease in the aggregate expenditures schedule and explain why the decline in real GDP in your diagram is...
-
The data in columns 1 and 2 in the accompanying table are for a private closed economy: LO4 a. Use columns 1 and 2 to determine the equilibrium GDP for this hypothetical economy. b. Now open up this...
-
In problem, determine whether the function is one-to-one. {(-2, 5), (-1, 3), (3, 7), (4, 12)}
-
In the four years since missing St. Louis Cardinal Mark McGwires 70th home run in St. Louiss Busch Stadium in 1998, Tim Hayden had been toying with the idea of creating some sort of electronic device...
-
The Black Panther Party a. rapidly spread throughout the country. b. promoted peaceful integration between Blacks and whites. c. advocated armed self-defense. d. worked alongside California police...
-
Let f(x)=x2-x+6 and g(x)=7x+9. Find g(3) and f(g(3)). g(3)=(Simplify your answer.)
-
2. Identify a problem (only one problem relating to OB) in an organisation that you have access to (preferably an organisation where at least one group member works or has worked recently. Do not...
-
Describe the following two knowledge management tenets in more detail; 1. The business infrastructure needs to incorporate knowledge management. 2. Technology is an enabler, not a cure-all.
-
A new grocery store is being erected that will demolish a neighborhood basketball court. Who would be some internal stakeholders? Who would be some external stakeholders?
-
Why do markets typically lead to an efficient outcome for buyers and sellers?
-
Which of the following is a characteristic of a Special Revenue Fund that differentiates it from a General Fund? a. A Special Revenue Fund is required to be budgeted on a multi-year basis. b. A...
-
What effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real...
-
Assume that (a) the price level is flexible upward but not downward and (b) the economy is currently operating at its full-employment output. Other things equal, how will each of the following affect...
-
Assume that (a) the price level is flexible upward but not downward and (b) the economy is currently operating at its full-employment output. Other things equal, how will each of the following affect...
-
Management reserves are a part of the cost baseline. Group of answer choices True False
-
We should teach innovators To use modeling digital based cookies O to be detectives To predict the future O to plan for many years
-
Joshua is about to interview for a position at Petsmart. Before entering the interview room, his interviewer takes him to the coffee break room to get him a cup of coffee. On the way to the room, the...
Study smarter with the SolutionInn App