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The marginal propensity to consume is the amount that will be consumed out of each additional dollar earned.
Suppose that the MPC has a value of 0.95. If this is true, then a $10 million increase in disposable income (YD) will have what impact on the value of total consumption in the economy?
Write a two-page essay in which you address the issues outlined above. Format your essay in a Word document using Times New Roman 12-point, one-inch margins and double spacing.
You are considering to save some money. Out of your yearly income you will deposit a fixed amount per semester at a nominal rate of 8 percent per year compounded each 6 months during 5 years.
During the period 1973-1975, the United States experienced a deep recession with a simultaneous sharp rise in the price level. Would you conclude that the recession was the result of a supply shock or a demand shock.
Suppose that benefit rules are changed so those disabled workers who take jobs that pay less than $X per day receive a benefit that brings their total daily income (earnings plus the DI benefit) up to $X. analyze the work-incentive effects of the c..
In the aggregate expenditure model, suppose that consumption function is given by C=800+0.58(Y-TP), that planned investment (I) equals 250, and that government buy
Since 1990, energy use per person has either remained fairly stagnant or has increased in different nations and regions of the world. Match the nation or region with the trend in energy use per person since about 1990. Column preview China. increa..
Why does there always seem to be an abundance of HMO's in some areas and none in others. Should everyone be entitled to health care whether they can afford it or not Who should pay for the ones who cannot afford health care
Assume the government mandates that all firms over 50 employees must provide an increased level of health care benefits. Could you please describe what effect this will have on the aggregate supply curve.
If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income (approximately) increase If your nominal income rose by 2.8 percent and your real income rose by 1.1 percent..
Suppose that there are two stores, A and B, that sell homogenous good. Suppose that the two stores are located on the real line: store A is at 0, while store B is at 1. Derive the demand functions for the two stores
Matt and Johnny both purchase pop and chips at the same convenience store. They have different tastes for pop and chips, so Matt buys 3 cans of pop and 10 bags of chips whereas Johnny buys 15 cans of pop and 2 bags of chips.
The Haas Corporation's executive vice president circulates a memo to the firm's top management in which he argues for a reduction in the price of the firm's product. He says such a price cut will increase the firm's sales and profits. a. The firm'..
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