Reference no: EM131172404
1. Which of the following will make crowding out caused by government borrowing more severe?
A. A steep (inelastic) investment demand curve
B. A global credit market
C. Tax increases
D. A steep (inelastic) supply curve in the loanable funds market
E. None of the above
2. Crowding out could cause:
A. reduced long-run growth.
B. reductions in private investment.
C. higher interest rates.
D. greater returns to saving.
E. All of the above
3. If the MPC = 0.80 and taxes are increased by $1,000, the Keynesian model predicts the change in equilibrium GDP will be:
A. +$5,000.
B. +$4,000.
C. -$1,000.
D. -$4,000.
E. -$5,000.
4. If the economy is at full employment with an MPC of 0.90 and the government decreases taxes by $1,000, the resulting increase in output will be:
A. less than $4,000.
B. less than $5,000.
C. less than $8,000.
D. less than $9,000.
E. more than $9,000.
5. Government spending policies can be developed to work against the problems of unemployment and inflation because government spending can:
A. decrease aggregate demand to combat unemployment and increase aggregate demand to combat inflation.
B. increase aggregate supply to combat unemployment and decrease aggregate demand to combat inflation.
C. increase aggregate supply to combat unemployment and decrease aggregate supply to combat inflation.
D. increase aggregate demand to combat unemployment and increase aggregate demand to combat inflation.
E. increase aggregate demand to combat unemployment and decrease aggregate demand to combat inflation.
|
How realistic is it to assume that people will act out
: How realistic is it to assume that people will act out of a sense of moral duty? Is this a significant flaw in Kant's system? Give examples that illustrate your responseples that illustrate your response.
|
|
Methods of front-end prison programs
: Research three methods of front-end prison programs and three methods of back-end programs for a total of six prison population reduction programs.
|
|
The elasticity of demand for alcoholic beverages
: The elasticity of demand for alcoholic beverages is basically inelastic and when the government (State of Federal) increases taxes, the government tax revenue increases.
|
|
Emerging trends in health information technology
: Health care administrators must be able to see into the future, or at least make educated guesses, particularly when it comes to anticipating the strategic value and practical impact of health information technology. For this final Discussion, you..
|
|
Make crowding out caused by government borrowing more severe
: Which of the following will make crowding out caused by government borrowing more severe? Crowding out could cause: If the MPC = 0.80 and taxes are increased by $1,000, the Keynesian model predicts the change in equilibrium GDP will be: Government sp..
|
|
Define asymmetrical power relation
: Define Asymmetrical power relation in recruitment and selection. The answer should be in a 1000 word essay.
|
|
Standard format for preparing assignment
: A well known automobile company is facing crisis. It came to know poor decision making was the reason of that problem. You are appointed as a manger of the company, how you will cope up the problem which rose.
|
|
Calculate the total effect on output
: The government increases taxes by $6200 in an economy where households spend 92% of each additional dollar they earn. Calculate the total effect on output (or aggregate demand). Carefully follow all numeric instructions. Round any intermediate steps ..
|
|
On the index of economic freedom
: Toyota is considering building a production facility in Pakistan. On the Index of Economic Freedom (IEF), Pakistan scores a 99. Which of the following are reasons the IEF rating might cause Toyota to be hesitant about building the factory?
|