« previous next »

Author Question: If the government decreases spending and taxes by 1,000 units and the marginal propensity to consume ... (Read 92 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?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

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.

IgM pentamer of immunoglobulin units IgM pentamer of immunoglobulin units
Primates exhibit prolonged life histories, spending more time in each stage of life than most other Primates exhibit prolonged life histories, spending more time in each stage of life than most other
Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de
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 ...
How to convert between imperial and metric units (Part 2) How to convert between imperial and metric units (Part 2)
Government Corruption versus GDP per Capita, 2009 Government Corruption versus GDP per Capita, 2009
Video: Parkinson's Disease

For a complete list of videos, visit our video library