MACROECONOMICS W/CONNECT
18th Edition
ISBN: 9781307253092
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Question
Chapter 11, Problem 5RQ
To determine
Multiplier.
Expert Solution & Answer
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Check out a sample textbook solutionStudents have asked these similar questions
If the multiplier is 5 and investment increases by $3 billion, equilibrium real GDP
will increase by:
Select one:
a. $2 billion
b. $8 billion.
C.$15 billion.
d. $3 billion.
SHORT ANSWER QUESTIONS
Increase in foreign holdings of assets in the United States
Exports of goods
Imports of services
Statistical discrepancy
Net transfers
Exports of services
Imports of goods
Income payments on investments
Increase in U.S. holdings of assets in foreign countries
Income received on investments
b. the balance of trade
c. the balance on the financial account
$3,288
31. The following are hypothetical data on the U.S. balance of payments. You can assume the balance on
capital account is zero. Use the data to calculate the following (SHOW YOUR WORK)
a. the balance on the current account
d. statistical discrepancy
-$29
1
64
694
-1,520
-444
-3,286
545
12. State how each of the following will affect the relative values of the U.S. dollar and the British pound
(say which currency appreciates and which currency depreciates):
(a) U.S. citizens switch from buying stock in U.S. companies to buying stock in British companies.
(b) The inflation rate in the United States decreases…
An Economy has no imports or taxes, the MPC is 0.90 and real GDP is $12 trillion. If businesses increase investment by $0.1 trillion:
1. Calculate the multiplier?
2. Calculate the change in real GDP?
3. Calculate the new level of real GDP?
Chapter 11 Solutions
MACROECONOMICS W/CONNECT
Ch. 11.2 - Prob. 1QQCh. 11.2 - Prob. 2QQCh. 11.2 - Prob. 3QQCh. 11.2 - Prob. 4QQCh. 11.7 - Prob. 1QQCh. 11.7 - Prob. 2QQCh. 11.7 - Prob. 3QQCh. 11.7 - Prob. 4QQCh. 11 - Prob. 1DQCh. 11 - Prob. 2DQ
Ch. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - Prob. 6DQCh. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 1RQCh. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - Prob. 4RQCh. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
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Similar questions
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- a. By how much will GDP change if firms increase their investment by $11 billion and the MPC is 0.8? Instructions: Round your answers to the nearest whole number. The change in GDP $ billion. b. If the MPC is 0.5? The change in GDP = $ billion.arrow_forwardThe multiplier is the ratio of the change in ________ to a change in ________. Select one: a. the level of saving; the level of consumption b. autonomous consumption; induced consumption c. the MPC; the MPS d. the equilibrium level of output; some autonomous variablearrow_forwardConsider a simple economy in which investment is constant and equal to $100 billion. There is no government or foreign sector, and the price level is constant. Consumption is C= $40 billion - 0.75Y What is the value of the marginal propensity to consume? what is consumption at an output of $1,000 bllion? a. c. What is the equilibrium GDP in this model? d. What is the value of the multiplier? e. What happens to equilibrium GDP should investment demand fall to S80 billion?arrow_forward
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