? Suppose that the required reserve to deposit ratio is 5%. Assume that people deposit all the cash they have and that banks do norhold excess reserves. Then if the amount of banks reserves is 20, how much is the money supply?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aMoneyHomework Unanswered Due Mar 17th, 11:59 PMbс4001000211 21Homework Unanswered Due Mar 17th, 11:59 PMSuppose the initial change in spending is $12 billion. The indirect effects of that change cause a change in total spending of $24billion. What is the mpc?Type your numeric answer and submit

Reserve ratio is the ratio of deposit that is kept by the banks. Multiplier = 1/r r is the reserve…

Suppose that the required reserve to deposit ratio is 5%. Assume that people deposit all the cash they have and that banks do nor hold excess reserves. Then if the amount of banks reserves is 20, how much is the money supply? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с 400 1000 21 d 1 P

Suppose that the required reserve to deposit ratio is 5%. Assume that people deposit all the cash they have and that banks do nor hold excess reserves. Then if the amount of banks reserves is 20, how much is the money supply? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с 400 1000 21 d 1 P

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 13SQ

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Similar questions

Assume taxes are zero and an economy has a consumption function of C = 0.80 (Yd) + $879.06. How much savings take place if disposable income is equal to 3,258.02? Round your answer to two digits after the decimal and include a negative sign if you find negative savings which is borrowing.
Calculate MPS when MPC is 0.41
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Assume the following consumption schedule: C = 20 + 0.9Y, where C is consumption and Y is disposable income. At a(n) $1,000 level of disposable income, the level of saving is $80. $920. $180. $18.
If the value of investment multiplier is 1 what will be the value of MPC
In 2018, Kendall Ford, an automobile dealership, spent $20,000 on a new car lift for itsrepair shop, $2,000 on a new copy machine for its sales division, and $600,000 on FordMotor company stock. Unsold cars and trucks were valued at $400,000 on January 1, 2018and unsold cars and trucks were valued at $900,000 on December 31, 2018. What isKendall Ford's total investment spending in 2018?F) $1,022,000 G) $522,000 H) $22,000 J) $322,000 Could you please explain a little about the time January 1, 2018 and December 31 2018. Does the time zone affect any component of GPD? Thanks in advanced.
1. (MPC and MPS) If consumption increases by $12 billion when real disposable income increases by $15 billion, what is the value of the MPC? What is the relationship between the MPC and the MPS? If the MPC increases, what must happen to the MPS? How is the MPC related to the consumption function? How is the MPS related to the saving function?2. (Government Spending) How do changes in disposable income affect government purchases and the government purchase function? How do changes in net taxes affect the consumption function?3. (Net Exports) What factors are assumed constant along the net export function? What would be the impact on net exports of a change in real disposable income?4. Expectations and consumer confidence are important in determining fluctuations in aggregate spending. In your opinion, what is the present status of consumer confidence? Do you think consumers are pessimistic or optimistic? Briefly discuss.5. (Consumption Function) How would an increase in each of the…
How to calculate mpc?
9. If the MPC is greater than zero but less than one, then we can be sure that when disposable income rises by P1 consumption will: a. not be affected b. will rise by more than P1 c. will rise by less than P1 d. will rise by exactly P1.
What is the meaning of "animal spirits"? How do these relate to planned investment spending and to unplanned investment spending?
14. If consumption function is given by : C= 100 + 0.8Yd , then MPS equal a.2 b.8 c.0.8 d.0.2
True/False Calculate MPS when MPC is 0.88