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- Assume that a three sector economy in country W the amount of autonomous consumption is RM 300 million with the proportion of increase in income that is spent on consumption is 0.5 an induced tax of 20% is amount of government spending is RM 150 million Requirements Caluclate the national income equilibriumBased on the table and graph, explain how the country's rate of GPD growth has compared to its debt growth over time and what the implication is for the debt/gdp ratiWhat would happen to the level output income if the government increase tax collections on personal income by 100 billion and spent the entire mouth. Assume MPS equals .20.
- Given a full employment level of GDP of 700 Trillion and a current level of 670 Trillion the government would want to Increase the interest rate in the economy Reduce government taxes Increase government spending Both A and C Both B and CHow to calculate the level of GDP base on the MPC & MPS? Historical durations of recessions? The effect of foreign trade on the U.S. economy? Importance of who holds the public debt?Assume that a three-sector economy in Country W. The amount of autonomous consumption is RM300 million with the proportion of an increase in income that is spent on consumption is 0.5. An induced tax of 20% is imposed by the country. The amount of investment is RM250 million, and the amount of government spending is RM150 million. A) explain what would happen to the national income equilibrium if the invesment changes by rm100 million
- For the economy as a whole Income must be more than expenditures. Select one: a. False b. TrueIf the federal government lowers business and personal tax rates we would expect a interest rates to rise B potential GDP to fall C fiscal policy to increase D consumer and investment spending to increaseAssume that a three-sector economy in Country W. The amount of autonomous consumption is RM300 million with the proportion of an increase in income that is spent on consumption is 0.5. An induced tax of 20% is imposed by the country. The amount of investment is RM250 million, and the amount of government spending is RM150 million. (iii) Explain what would happen to the national income equilibrium if the investment changes by RM100 million.
- In 2001, the Bush Administration increased spending by $100 billion and raised taxes by $70 billion at thesame time. It’s likely that:A. interest rates will most likely not increase.B. interest rates will most likely increase.C. business investment is not likely to change.D. business investment is likely to increase due to crowding outAssume that a three-sector economy in Country W. The amount of autonomous consumption is RM300 million with the proportion of an increase in income that is spent on consumption is 0.5. An induced tax of 20% is imposed by the country. The amount of investment is RM250 million, and the amount of government spending is RM150 million. Explain what would happen to the national income equilibrium if the investment changes by RM100 million.To determineThe government expenditure required to retain the full employment level in the economy