The following information is provided about an open economy with a government. Use the information to answer the questions that follow: C = 450 + 0.4Y I = 350 G = 150 X = 70 Z = 35 + 0.1Y T = 0.15Y Yf = 1550 Calculate the size of the multiplier (Note: Round your answer to two decimal places)
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A: We the following information about an open economy with a government- C = 450 + 0.4Y (Consumption…
The following information is provided about an open economy with a government. Use the information to answer the questions that follow:
C = 450 + 0.4Y
I = 350
G = 150
X = 70
Z = 35 + 0.1Y
T = 0.15Y
Yf = 1550
Calculate the size of the multiplier
(Note: Round your answer to two decimal places)
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- Which of the following best describes the catch-up effect? Question 14 options: It is easier for a country to grow fast and "catch up" with richer countries if it starts out relatively poor. Saving will always "catch up" with investment spending. If investment spending is low, increased saving will help investment to "catch up." Rich countries aid relatively poor countries so as to help them "catch up."Given the following on a closed economy, determine the following The level of Private savings The level of Public savings The level of national savingThe following information is provided about an open economy with a government. Use the information to answer the questions that follow: C = 450 + 0.4Y I = 350G = 150X = 70 Z = 35 + 0.1Y T = 0.15YYf = 155 Before the government decreased the tax rate, how much of government spending was required to bring the economy to full employment?
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- If the government runs a trade surplus, a fiscal deficit, and savings remain unchanged, what will happen to the investment component of GDP? Group of answer choices - ONE OPTION ONLY Investment will increase. Investment will remain unchanged. Investment will decrease. Not enough information is given, assuming our simple basic model as the measure of investment.Consider the changes in equilibrium that are presented in the following graph: The change from E0 to E2 is caused by.. Answer Choice Group Appreciation of the national currency Depreciation of the national currency Increase in taxes paid by companies in the country A decrease in the price of gasolineThe following information is provided about an open economy with a government. Use the information to answer the questions that follow: C = 450 + 0.4Y I = 350G = 150X = 70 Z = 35 + 0.1Y T = 0.15YYf = 1550 Calculate the level of autonomous spending in this economy.
- Out of the options below, which is the best answer for a complete analysis of economic conditions? GDP: +1.2 Consumption: +0.1% Investment: +3.0% Government Expenditures: +0.5% Net Exports = Unchanged a. Consumer spending is down but consumer investing is up. I expect the stock market to be reaching new highs b. While GDP growth is slow, the future is bright because firms are investing in new plant and equipment a. The economy is doing well at 1.2% growth. d. GDP is growing but with flat consumption, increased investment is likely due to inventory increases. This is a bad sign for the economy now and perhaps next quarter.Which of the following equations is correct for an economy that does not have a government or a foreign sector? Multiple Choice MPC × MPS = 1 MPC/MPS = 1 MPC - MPS = 1 MPC + MPS = 1Change in the financial market of an economy will affect the global economy. Briefly discuss.