This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Economists think that the marginal propensity to consume for the U.S. economy is somewhere around ... (Read 127 times)

Pea0909berry

  • Hero Member
  • *****
  • Posts: 573
on: Mar 16, 2019

Question 1

What is the formula for the multiplier? Explain why this formula is considered to be too simple.



Question 2

Economists think that the marginal propensity to consume for the U.S. economy is somewhere around 0.9. Based on our simple multiplier formula, this would imply that the multiplier for the United States should be around 10. However, economists agree that the spending multiplier is closer to 2. What might explain this supposed anomaly?

Macroeconomics ¦ Hubbard, O'Brien ¦ 6th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Pea0909berry on Mar 16, 2019

lou

  • Sr. Member
  • ****
  • Posts: 286
Reply #1 on: Mar 16, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 42% of students answer this correctly


Pea0909berry

  • Hero Member
  • *****
  • Posts: 573
Reply #2 on: Mar 16, 2019
Thanks


lou

  • Sr. Member
  • ****
  • Posts: 286
Reply #3 on: Mar 16, 2019
Welcome :)


« previous next »
 

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Major trunk lines carrying long-distance traffic crisscrossed the area east of the Mississippi. The Major trunk lines carrying long-distance traffic crisscrossed the area east of the Mississippi. The
Creating a Continental Economy Creating a Continental Economy
Latin America in the Global Economy Latin America in the Global Economy
Migration and Global Economy Migration and Global Economy
Japan’s Economy and Society Japan’s Economy and Society
Economic activity as viewed by environment and ecological economists Economic activity as viewed by environment and ecological economists
Video: Electromagnetic Spectrum, Chlorophyll and Pigment & Light

For a complete list of videos, visit our video library