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

Author Question: Assume that taxes depend on income. The MPCis 0.8 and tis 0.4. If government purchases increase by ... (Read 77 times)

lak

  • Hero Member
  • *****
  • Posts: 546
on: Apr 19, 2019

Question 1

Assume that taxes depend on income. The 
MPC is 0.5 and 
t is 0.2. If government spending increases by $10 billion, the equilibrium level of output will increase by


◦ $16.7 billion.
◦ $25 billion.
◦ $50 billion.
◦ $100 billion.

Question 2

Assume that taxes depend on income. The 
MPC is 0.8 and 
t is 0.4. If government purchases increase by $100 billion, the equilibrium level of output will increase by


◦ $16.7 billion.
◦ $57.5 billion.
◦ $192.31 billion.
◦ $215.9 billion.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by lak on Apr 19, 2019

fur

  • Sr. Member
  • ****
  • Posts: 309
Reply #1 on: Apr 19, 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 25% of students answer this correctly


lak

  • Member
  • Posts: 546
Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review

Liamb2179

  • Member
  • Posts: 365
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Sources of income for U.S. population aged 65 and over. Sources of income for U.S. population aged 65 and over.
Income of Adult Children Compared With That of Their Parents Income of Adult Children Compared With That of Their Parents
How the Distribution of Education Affects the Distribution of Income How the Distribution of Education Affects the Distribution of Income
Relationship between Latitude and Income per Capita Relationship between Latitude and Income per Capita
A melting profile shows the increase in UV absorption versus temperature A melting profile shows the increase in UV absorption versus temperature
The constitutional division of Powers Between the National Government and the States The constitutional division of Powers Between the National Government and the States
Video: Glucose anabolism reactions: Glycogenolysis and Gluconeogenesis

For a complete list of videos, visit our video library