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 124 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?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

This chart illustrates the four quadrants in which we can place the relationships between the state This chart illustrates the four quadrants in which we can place the relationships between the state
Links to the World Economy Links to the World Economy
Food Sources of Fiber Adults need to consume about 21 to 38 grams of fiber daily Food Sources of Fiber Adults need to consume about 21 to 38 grams of fiber daily
You Need to Consume Carbohydrates Daily You Need to Consume Carbohydrates Daily
People with night eating syndrome may consume more than half their day's calories between 8 pm ... People with night eating syndrome may consume more than half their day's calories between 8 pm ...
The minimum number of moles of oxygen needed to completely consume 4 moles of C3H8O is ... The minimum number of moles of oxygen needed to completely consume 4 moles of C3H8O is ...
Video: X chromosome inactivation in calico cats

For a complete list of videos, visit our video library