Business, 10.05.2020 05:57 alonnachambon

Suppose economists observe that an increase in government spending of $15 billion raises the total demand for goods and services by $60 billion.
If these economists ignore the possibility of crowding out, they would estimate the marginal propensity to consume (MPC) to be
1/4
3/4
1/4
4
Now suppose the economists allow for crowding out. Their new estimate of the MPC would be larger or smaller than their initial one

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 02:00, whatistheinternetpas

True or false: a smart store layout moves customers in and out as fast as possible. a) true b) false

Answers: 2

continue

Business, 22.06.2019 02:10, dakodahepps

Materials purchases (on credit). direct materials used in production. direct labor paid and assigned to work in process inventory. indirect labor paid and assigned to factory overhead. overhead costs applied to work in process inventory. actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) transfer of jobs 306 and 307 to finished goods inventory. cost of goods sold for job 306. revenue from the sale of job 306. assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions.

Answers: 1

continue

Business, 22.06.2019 05:50, Haddixhouse8948

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes

Answers: 2

continue

Business, 22.06.2019 08:40, bchagnard2122

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.

Answers: 3

continue

You know the right answer?

Suppose economists observe that an increase in government spending of $15 billion raises the total d...