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

Author Question: If consumption is defined as C = 2,000 + 0.8Y, then the marginal propensity to save is 0.8. ... (Read 55 times)

javeds

  • Hero Member
  • *****
  • Posts: 570
on: Jun 29, 2018
If consumption is defined as C = 2,000 + 0.8Y, then the marginal propensity to save is 0.8.
 
  Indicate whether the statement is true or false

Question 2

If the tax multiplier is -1.5 and a 200 billion tax increase is implemented, what is the change in GDP, holding everything else constant? (Assume the price level stays constant.)
 
  A) a 300 billion decrease in GDP
  B) a 30 billion increase in GDP
  C) a 300 billion increase in GDP
  D) a 133.33 billion increase in GDP
  E) a 133.33 billion decrease in GDP


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

14vl19

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jun 29, 2018
Answer to Question 1

FALSE

Answer to Question 2

A


javeds

  • Member
  • Posts: 570
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

amit

  • Member
  • Posts: 364
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

A graphical representation of the marginal value theorem. A graphical representation of the marginal value theorem.
save our planet save our planet
Per capita annual alcohol consumption (2005) Per capita annual alcohol consumption (2005)
Industrialized nations consumption Industrialized nations consumption
Canada Total Energy Consumption by Fuel Type Canada Total Energy Consumption by Fuel Type
The coefficient of the restitution of an object is defined as the ratio of its outgoing to ... The coefficient of the restitution of an object is defined as the ratio of its outgoing to ...
Video: Phlebotomy

For a complete list of videos, visit our video library