+1-415-670-9189
info@expertsmind.com
Eluciate new income in first round of multiplier process
Course:- Business Economics
Reference No.:- EM1349753





Assignment Help >> Business Economics

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.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100 per acre. However, if he raised soybeans, he could earn $200 per acre. Is he
The wage in Mexico is $5. The wage in the U.S. is $20. Provide current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the
For an individual who consumes two of the good X and Y, the marshallian demand function for X is flatter than the Hicskian demand function for X if X is a normal good. Why is
If each test provides$6 net marginal revenue before labor and capital costs, is expansion advisable? Show all your work and explain your answer well.
XBC Inc. is planning to buy a new car. Model A costs $22,000 and is expected to have a life of 4 years. Model B costs $35,000 but it is expected to last 6 years. The salvage v
Assume the average worker has 100 hours of leisure and could earn $10 an hour. Suppose the social security disability insurance (DI) program was structured so that otherwise e
Suppose the Canadian economy, on a fixed exchange rate, has a real growth rate of 2% and is in equilibrium with an inflation rate of 10% and a risk premium of 1%. Suppose chan
Consider three alternative ways of helping poor people get housing: government-subsidized housing costing $6,000 per year, a housing voucher worth $6,000 per year toward rent