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

Author Question: Multiplier Effect of Government PurchasesSuppose that government spending increases by $2 trillion. ... (Read 152 times)

ncasson210

  • Full Member
  • ***
  • Posts: 148
on: Nov 23, 2022

Question 1

Multiplier Effect of Government Purchases

If an increase in government spending of $400 billion results in a $1.4 trillion increase in equilibrium real GDP, then the marginal propensity to consume (MPC) is ________. (Round to the nearest hundredth when appropriate.)
◦ 0.65
◦ 0.71
◦ 0.29
◦ 0.35

Question 2

Multiplier Effect of Government Purchases

Suppose that government spending increases by $2 trillion. If the marginal propensity to consume (MPC) is 0.7, then what is the change in real GDP? (Round to the nearest hundredth when appropriate.)
◦ $2.86 trillion
◦ $6.67 trillion
◦ $1.4 trillion
◦ $0.35 trillion
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by ncasson210 on Nov 23, 2022

reactx

  • Full Member
  • ***
  • Posts: 162
Reply #1 on: Nov 23, 2022
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 64% of students answer this correctly


ncasson210

  • Member
  • Posts: 148
Reply 2 on: Nov 23, 2022
:D TYSM

ultraflyy23

  • Member
  • Posts: 312
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Effect of extracellular osmolarity on water movement across a plasma membrane Effect of extracellular osmolarity on water movement across a plasma membrane
Inverse Relation Between IQ and Disease. Could this explain the Flynn effect? Inverse Relation Between IQ and Disease. Could this explain the Flynn effect?
Effect of stimulus strength on size of graded potential. Effect of stimulus strength on size of graded potential.
effect of pH on ionization and charges of amines and carboxylic acid effect of pH on ionization and charges of amines and carboxylic acid
Actions of mutM, mutT, and mutY gene products in countering the mutagenic effect of 8-oxoguanine -oG Actions of mutM, mutT, and mutY gene products in countering the mutagenic effect of 8-oxoguanine -oG
Greenhouse Effect Greenhouse Effect
Video: Elementary kinetics

For a complete list of videos, visit our video library