10) If an economy's MPC is 0.8 and the MPM is 0.05, then an increase in government spending of $2,000 will increase income by A) $5,500. B) $8,000. C) $10,000. D) $20,000.
Q: What happens to consumer surplus when the supply curve moves left? Question 2 options: Since…
A: The markets are the place which are operated by the buyers and the sellers of various different…
Q: Describe the difference between financial markets and financial intermediaries? How can your funds…
A: Monetary business sectors and Financial go-betweens are two channels through which the monetary…
Q: Question 2 Market researchers have studied the market for orange juice, and their estimates for the…
A:
Q: If the value of a bank's assets exceeds the value of its liabilities, the bank is O liquid O iliquid…
A: Assets refer to the resources owned by a bank . Liabilities are the debts that bank owes and it has…
Q: Use the following information to answer the questions: Suppose the Texans Bank has total deposit of…
A: Answer; The Texans Bank has total deposits of $2,769. It also has a required reserve ratio of 6%.…
Q: Case Study: Petrol price regulation in South Africa In South Africa, government has intervened in…
A: Given information set is related to liquid fuels or oil market. It is unregulated. Prime objective…
Q: If foreigners investing in the United States (i.e. DI) is less than U.S. investors investing abroad…
A: Foreign exchange market is an international mechanism for foreign currency purchases and selling.…
Q: 2. Suppose that the demand curve for cigarettes is given by y(p) = 50 - P and the supply curve is…
A: y(p)=50-P y(p)=P
Q: QUESTION 4 Monetarization of economy spurred the progress of science, e.g. the Enlightenment and the…
A: Monetization of an economy refers to the structural change of an economy from barter system to money…
Q: The people in an economy have $10 million in money. There is only one bank that all the people…
A: The formula for money multiplier: Money multiplier = 1 / Required Reserve Ratio
Q: Your income in 2004 was $67,000 and your income in 2020 was $95,000. The price index in 2004 was…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: Unique Flowers is the only florist in Wales. When the firm maximizes profit, is the outcome…
A: Consumer surplus and producer surplus total is called total surplus or welfare of society.
Q: The economy is also characterised by the following features; Total deposits = $250,000, Total…
A: As per the question, Total deposits = $250,000,Total currency in circulation = $45,000Total reserves…
Q: Under standard assumptions, in the short run, currency devaluation causes a country's output to O…
A: >A devaluation of the currency makes domestic goods cheaper in the international markets.…
Q: 5 years from now, describe the economic situation of our country
A: The two basic categories of economics are microeconomics, which evaluates individual consumers and…
Q: STRAND 3 OUR ECONOMY 22. The table below shows the demand and supply schedules for Boosted Board…
A: Question 22: Price Quantity Demanded Quantity Supplied 800 25000 5000 900 20000 10000 1000…
Q: Which of the following arguments for limitations on trade is more controversial among economists?…
A: In an open economy, government generally intervene in the international trade by using its policies,…
Q: What was a result of the burst of the "dot com" bubble? Stock market prices quickly recovered. Use…
A: When talking about 'dot com' bubble, it is the market situation when economy faced slow down during…
Q: computer producers. Hence, they decide to impose a 30% tariff (a tax on imports) on imported…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first two subparts question…
Q: icc/cost MC AVC BY A D C
A: The marginal cost (MC) curve is described as the change in total cost divided by the change in…
Q: Gendered Economic Geography mainly focuses on the gendered nature of the workforce, emphasizing how…
A: Gender equality would mean treating males and females same, as women also had right to be part of…
Q: Given the Quantity Thoeory of Money: if Real GDP equals $2,000, the mone money equals 2, then the…
A: Quantity theory of money shows the relationship between price level, real GDP, velocity and money…
Q: Suppose the market demand and supply equations for Face masks are given by: Market Demand: P = 400 –…
A: Given: P=400-4Q P=4Q Note: Due to multiple subparts being posted, the first three subparts have been…
Q: with the aid of a fully labelled diagram, explain the welfare costs of minimum price fixing for…
A:
Q: A man decided to deposit a certain amount of money on his son's 10th birthday, which will be…
A: FV = 280,000 Bank pay interest rate = 5.5% Rate of inflation = 8.7% n = (25 - 10) = 15 Year Note:-…
Q: The manufacturer of Brand A automobile tires claims that its tire can save 120 gallons of fuel over…
A: The information we have is:- The manufacturer of Brand A automobile tires claims that its tire can…
Q: The economy is in a recession. The government enacts a policy to increase spending by $10 billion.…
A: Answer; Answer is A. $100 billion. Spending multiplier = 1/MPS = 1/0.1 = 10. Increase…
Q: Assuming that the inflation rate frum 2015 through 2017 is 6% per year, whai would be a $50,000…
A: Here we calculate the real values in all three years , real value means inflation adjusted nominal…
Q: A sum of $10,000 now (lime 0) in equivalent to the tolowing caah Row diagram. What n the of $B the…
A: Answer;
Q: The following table shows the price of a specific stereo receiver for a five-year period. Using…
A: Price index: - it is the measure of change in the price level, it measures the change in the price…
Q: A manufacturer has $600 to spend on the production of a certain product and knows that if "x" units…
A: Given, Cost of capital (Px) = $3 Cost of labor (Py) = $5 Total income which manufacture has to spend…
Q: Imagine the government wants to conduct an expansionary fiscal policy and needs an expert to answer…
A: Marginal propensity to consume shows how consumption changes as income changes. It is the ratio of…
Q: A balance of payments crisis is O a sharp change in foreign reserves sparked by a change in…
A: A crisis that involves a sudden decline in the value of the currency of a nation causing various…
Q: As described in the chapter, the Federal Reserve in 2008 faced a decrease in aggregate demand caused…
A: Given:- Fed reserve faced fall in aggregate demand(AD) and fall in short run aggregate supply(AS).…
Q: Which of the following can be used as a method for reducing the problems of moral hazard and/or…
A: Risk-taking is the essence of moral hazard.Moral hazard arises when one party or person in a…
Q: Samsung Electronics is trying to reduce supply chain risk by making more responsible make/buy…
A: Breakeven Units of Sales It refers to the number of completed items that must be sold to cover the…
Q: Is the collection of emissions fees economically efficient in terms of cost effectiveness? How do…
A: Emissions Fee is defined as the fee which is charged on air pollution that is caused by the…
Q: The IS-MP model, the Philips Curve and the Taylor Rule An investment recession. Use the IS-MP…
A: Since the question you have posted consists of multiple parts, we will answer the first part of the…
Q: Compare and contrast the strengths and weaknesses of fiscal policy and monetary policy.
A: Fiscal policy is also known as the budgetory policy of the government. Monetary and Fiscal policy…
Q: Suppose before tariff, the price of imported avocado from Mexico to United States is $1.06 and 898…
A: 10Q) Answer; Deadweight Loss = $10.02
Q: R,' EER' EER2 Rates of Retum (in dollar terms) O 1) a decrease in the European money supply which…
A: In the international market, the return on investment depends upon its value in the market, which is…
Q: Which of the following can be used as a method for reducing the problems of moral hazard and/or…
A: Moral hazard or adverse selection are caused by the asymmetric information.
Q: When the government imposes a binding price floor, it causes Question 1 options: The demand…
A: Price floor refers to the legal minimum price that can be charged for a good. Seller can not sell…
Q: Suppose that demand curve for apple in Brooklyn is as the followings: Qu = 72 – 12P where Qu is for…
A: Elasticity of demand measures the responsiveness of quantity demanded to changes in price level.
Q: Comment on the free rider problem in the context of global climate agreements.
A: Free rider problem in the context of global climatic agreements according to economists is treated…
Q: 17. What is the effective annual interest rate if the nominal interest rate is 6%, compounded…
A: Formula used - Effective annual interest rate = (1 + (nominal rate / number of compounding periods))…
Q: At a current level of production of 10,000 per day in its Garner plant, the marginal cost of…
A: According to the question, it is given that : Output per day is 10,000 Marginal Cost is 50 cents…
Q: A short-run increase in government spending causes the currency to, and output to appreciate;…
A: when the expansionary fiscal policy occurs due to an increase in government spending, the demand for…
Q: The table below provides Income and consumption Data in billions of dollars. Answer questions below…
A: The given table gives information about the increase in the consumption level with the increase in…
Q: Figure 19-6 25.00 Demand Supply 22.50 20.00 17.50 15.00 12.50 10.00 7.50 5.00 2.50 10 20 30 40 50 60…
A: Minimum wage is defined as the lowest legally approved wage which can be paid by the employers to…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- ECONOMICS An economy has neither imports nor income taxes. The MPC is 0.75 and the real GDP is $120 billion. The government increases expenditures by $4 billion. The multiplier is _____ and the change in real GDP from the increase in government expenditures is _____ billion.If MPC =2/3, actual GDP = $14,000 and potential GDP = $13,100, there is a __________(recessionary / inflationary) gap of $_____ and a _________ (decrease / increase) in personal taxes of$______ would eliminate the gap.Suppose the government seeks to achieve a balanced budget by levying taxes of $50 billion and making expenditures of $100 billion. How will this affect GDP if MPC=0.8?
- Question 3: At a level of National Income of AED 30,000 Million, the government announced an increase in expenditures from AED 1000 Million to AED 1500 Million as a stimulus package for infrastructure development and at the same time government also announced an increase in tax from AED 1000 Million to AED 1600 Million. The marginal propensity to consume (MPC) for the country is 0.75. Find the impact of these changes on National Income. Explain the leakages of multiplierDetermine the net impact upon the nation's economy that results from equal increases in government spending and taxes of $10 billion when the MPC is .8. Show your work.suppose the government wishes to illuminate recessionary of a gdp of 100 billion in the MPC is .075. How much must the government increase in spending? Instead of increasing government spending by the amount you calculated what would be the effect of the government decreasing taxes by this amount explain?
- If MPC = 0.5, a simultaneous increase in both taxes and government spending of $20 will a. decrease GDP by $20 b. increase GDP by $20 c. decrease GDP by $40 d. increase GDP by $40Consumption = 115 + 0.6Y Investment = 550 What is the value of autonomous spending , the value of the multiplier and the equilibrium level of income13. Taxes are reduced by $50 billion and income increases by $1,000 billion. The value of thetax multiplier is:(A) -4. (B) -20. (C) -10. (D) -5.
- When the MPC increases: a. the government spending multiplier stays the same b. the government spending multiplier decreases c. the government spending multiplier also increases d. the government spending multiplier could increase or decreases e.depending on whether government spending is increasing or decreasingQUESTION 40 Assume the economy is in a recession and real GDP is below its potential level of output. The MPC is .75, and the government increases spending by $100billion. How much will aggregate expenditures rise? A) $100 billion B) $75billion C) $400billion D)$133 billionIf in an economy MPC is 0.8 and investment increase by $5 billion. How much there is an increase in income.