« previous next »

Author Question: If the government decreases spending and taxes by 1,000 units and the marginal propensity to consume ... (Read 98 times)

scienceeasy

  • Hero Member
  • *****
  • Posts: 565
on: Jun 30, 2018
If the government decreases spending and taxes by 1,000 units and the marginal propensity to consume is .9, then
 
  a. more information is needed.
  b. output will decrease by 900.
  c. output will decrease by 10,000.
  d. output will increase by 10,000.

Question 2

Any increase in the present value of taxes implies
 
  A) an increase in lifetime wealth and an increase in the current labor supply.
  B) an increase in lifetime wealth and a decrease in the current labor supply.
  C) a decrease in lifetime wealth and an increase in the current labor supply.
  D) a decrease in lifetime wealth and a decrease in the current labor supply.


deja

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
Generally, the total tax burden in the United States is much lower than that of other industrialize Generally, the total tax burden in the United States is much lower than that of other industrialize
The percentage of never-married men and women decreases with age, and by the age of 65, more than ... The percentage of never-married men and women decreases with age, and by the age of 65, more than ...
Find the final amount if the initial amount is 400 units. Find the final amount if the initial amount is 400 units.
Some IAC units are purchased with the housing as shown. Carbon buildup in these passages can cause ... Some IAC units are purchased with the housing as shown. Carbon buildup in these passages can cause ...
Because the factor h on the right side of the Heisenberg uncertainty principle has units of ... Because the factor h on the right side of the Heisenberg uncertainty principle has units of ...
Video: Stomach peristalsis & Enterogastric reflex

For a complete list of videos, visit our video library