If the government increases defense spending by $1 billion and the MPC is 0.8, how much additional spending occur in the third "round" of spending? A)$640 million B)$800 million C)$1 billion D)$1.8 billion
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- If the government increases defense spending by $1 billion and the MPC is 0.8, how much additional spending will occur in the third “round” of spending? a. $1 billion b. $1.8 billion c. $800 million d. $640 millionIf government procurement officials are stewards of public funds, how can the publicensure that this money is being spent correctly? What checks and balances come to yourmind when it comes to deciding how and where to spend a ministry’s budget?3. Suppose the MPC is 0.8. The government wants to decrease Total Spending by $600. How should it change G to achieve this goal? Show your work?
- As you can see from the graph below, since the CHIPS Act was passed, construction spending in the computer/electronics industry has increased by about $100 billion at an annualized rate. Suppose the increase is exactly $100 billion and the MPC-5, then we would expect FIN US Manufacturing Construction Spending CompuManfang Make Up More Than 50% of Manufacturing ( Computer Electronic/Electrical Chemical Food Beverage Tobacco Transportation Equipment Nonmetalic Minal Plastic Rubber Fabricated Metal Other the AD curve to shift to the left by $100 the AD curve to shift to the right by $100 billion. the AD curve to shift to the right by $50 billion. the AD curve to shift to the right by $200 billion.3 bok t ces The simple economy of Altria shown in the table below has no government or taxes and no international trade. Its investment is autonomous and its MPC is constant. a. Complete the table below. Remember to use a minus (-) sign to indicate negative values. AE Y S I 200 0 400 800 1,200 1,600 2,000 C 200 500 800 1100 1400 1700 0 -200 -100 100 200 300 b. The value of expenditures equilibrium is $ c. The value of the multiplier isYd Consumption Expenditure $ 0 $ 4,000 $ 10,000 $ 12,000 $ 20,000 $ 20,000 $ 30,000 $ 28,000 $ 40,000 $ 36,000 $ 50,000 $ 44,000 Calculate MPC, MPS, and Multiplier
- Please see attachment Answer neatly Show all your work. Based on the above diagram: 1. Calculate MPC? 2. If Private Investment increases by 100, calculate the new level of NI. 3. If full-employment NI is at 3000, by how much should Government spending change? 4. What is the new NI, If 1/2 of those government expenditures are financed through taxes?Tax Revenue ($) 50 NE 40 30 20 10 0 20 40 60 According to this Laffer curve, should the government increase the tax rate from 4C 80 Tax Rate (%) 100 O a.) Yes, because the tax revenue continues to increase after a tax rate of 4C b.) No, because the government should increase the tax rate to 100%. c) No, because the tax revenue is no longer maximized. NVIDIA G SYNE d.) Yes, because the government will receive a higher tax revenue. OIif the MPC= 75, how much of an increase in Government Spending woud take to shit the economy trom the short unguibrumat GOP0OM e long un utrum GOP=144M (l else equal Select one a $22M b $44M C. $0 SM d. $11M
- Only typed answer and please don't use chatgpt Suppose the tax multiplier in an economy is -3. How will total spending (TS) change when taxes (T) increase by $300? Group of answer choices TS will decrease by $900 TS will decrease by $100 TS will increase by $900 TS will increase by $100Give typing answer with explanation and conclusion Suppose that the typical Canadian spends 80 percent of their income. There is an income tax rate is 15% per period. If the government wanted to see the effect of a tax cut of $50 billion, what would be the tax multiplier that they would have to use.6. Use the following table to answer these questions: hoilli Y C $ 500 $ 600 $ 700 $ 800 $ 900 $500 $10 $20 $60 $590 $10 $20 $40 $680 $10 $20 $20 $ 0 -$20 --$40 $770 $10 $20 $860 $10 $20 $1,000 $950 $10 $20 a. What is the MPC? b. What is the MPS? c. What is the MPI? d. What is the level of aggregate expenditures at each level of income? e. Graph the aggregate expenditures function. 7. Based on the table in exercise 6, what is the linear equa- tion for each of the following functions? a. Consumption b. Investment c. Net exports d, Aggregate expenditures
