Business, 14.07.2020 19:01 leeshaaa17
Consider a hypothetical closed economy in which households spend $0.75 of each additional dollar they earn to save the remaining $0.25.
The marginal propensity to consume (MPC) for the economy is , and the spending multiplier for the economy is .
Suppose the government in this economy decides to increase government purchases by $250 billion. The increase in government purchases will lead to an increase in income, generating an initial change in consumption equal to _. This increases income yet again, causing a second change in consumption equal to . The total change in demand resulting from the initial change in government spending is .
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 00:20, brainbean
Suppose that the world price of steel is $100 a ton, india does not trade internationally, and the equilibrium price of steel in india is $60 a ton. suppose that india now begins to trade internationally. the price of steel in india the quantity of steel produced in india a. does not change; does not change b. falls; increases c. falls; decreases d. rises; decreases e. rises; increases the quantity of steel bought by india india steel. a. increases; exports b. decreases; imports c. decreases; exports d. does not change; neither imports nor exports e. increases; imports
Answers: 2
Business, 22.06.2019 21:10, dooboose15
Which of the following statements is (are) true? i. free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent. ii. in a perfectly competitive market, long-run equilibrium is characterized by lmc < p < latc. iii. if a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.
Answers: 3
Business, 23.06.2019 14:50, amandasantiago2001
Idont need this written for me but if someone could just come up with an example that can get the process started for me that would be ! research the consumer services industries in united states. choose any one of the consumer services companies and write an essay of about 500 words on how a diverse economy such as the united states can satisfy the needs of its consumers. consider different cultures and languages, services offered to lower socioeconomic populations, or services offered to disabled consumers or women. also analyze the challenges faced by the consumer service industry.
Answers: 1
You know the right answer?
Consider a hypothetical closed economy in which households spend $0.75 of each additional dollar the...
Questions in other subjects:
Mathematics, 06.05.2020 02:15
Mathematics, 06.05.2020 02:15
Health, 06.05.2020 02:15
Social Studies, 06.05.2020 02:15
Spanish, 06.05.2020 02:15
