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If in an economy a $120 billion increase in consumption spending creates $120 billion of new income in the first round of the multiplier process and $90 billion in the second round, the multiplier and the marginal propensity to consume will be respectively: a. 5.00 and 0.80; b. 4.00 and 0.75; c. 3.33 and 0.70; d. 2.50 and 0.40. Please show me how this is figured out too.
How much profit does an unregulated monopolist earn. How much profit would be earned if MC pricing were imposed
When one person saves which person's wealth is increased, meaning which he or she can consume more in the future. But when everyone saves, everyone's income falls, meaning which everyone must consume less today. Explain this seeming contradiction
Assuming that the marginal cost is zero to provide the rides to those in attendance, what is the best pay-per-ride price
A young physician makes $180,000 per year with an annual salary increase of 2%.
Elucidate this linkage in words also after that illustrate with a Cumulative Demand - Cumulative Supply diagram.
Is this commitment irreversible. Analyze Fiat's entry in term of Ghemawat's framework for analyzing commitment.
Suppose also that ham and cheese are the only goods that this person buys and that bread is free.
State two economic principles of taxation and which principle best justifies the excise tax on gasoline, when the tax revenue is used to maintain or improve the roads.
Over which range of production, the marginal product of the variable input would be increasing in the short run.
U.S. Airways experienced huge losses for several years in the 1990s, yet it continued to operate its fleets.
The rapid globalization of capital markets enables persons also institutions based in one nation to invest in corporations based elsewhere with relative ease.
Barb also Jim run a business which sets up also tests computers. Assume which Barb also Jim can switch between settings up also testing computers at a constant rate
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