This topic contains a solution. Click here to go to the answer

Author Question: Suppose the marginal propensity to consume is 0.63, the marginal propensity to import equals 0.08, ... (Read 116 times)

Engineer

  • Hero Member
  • *****
  • Posts: 527
Suppose the marginal propensity to consume is 0.63, the marginal propensity to import equals 0.08, and personal income taxes amount to 9 percent of GDP. The spending multiplier for this economy is equal to _____.
 a. 0.54
  b. 0.80
  c. 1.25
  d. 1.41
  e. 1.85

Question 2

Which of the following explains why the quantity of a good demanded decreases when its price increases?
 a. Consumer preferences change when the price of a good changes.
 b. The nominal income of consumers falls when the price of a good increases.
  c. Substitutes become relatively cheaper when the price of a good increases.
  d. Complements become relatively cheaper when the price of a good increases.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

paavo

  • Sr. Member
  • ****
  • Posts: 301
Answer to Question 1

e

Answer to Question 2

c




Engineer

  • Member
  • Posts: 527
Reply 2 on: Jun 30, 2018
Wow, this really help


connor417

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

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?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

For a complete list of videos, visit our video library