What happens to the interest rate and investment

Assignment Help Macroeconomics
Reference no: EM13208254

Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on the marginal propensity to consume?

Reference no: EM13208254

Questions Cloud

Assume that the input to each statement is the same : Assume that the input to each statement is the same: 5 28 36 a. cin >> x >> y >> ch; b. cin >> ch >> x >> y; c. cin >> x >> ch >> y; d. cin >> x >> y; cin.get(ch);
How is money supply affected if central bank prints sheckels : Currency held by the public is 1000 sheckels, bank reserves are 200 sheckels, and the desired reserve-deposit ratio is 0.2. What is the money supply How is the money supply affected if the central bank prints 100 sheckels
Can the capability also be used to install windows 7 : What Windows Server 2008 capability enables them to do the mass installation quickly and efficiently? What general steps are involved in setting up this capability? Can the capability also be used to install Windows 7 on the 24 new client workstat..
Explain dilute to mark with water and mix : dilute to mark with water and mix. (You will need the extra volume of this most concentrated solution for further studies.) Record your actual standard concentrations accounting for the dilution as Cstd1, Cstd2, Cstd3, and Cstd4, respectively.
What happens to the interest rate and investment : Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change Does your answer depend on the marginal propensity to consume
What is the sum after the following loop terminates : What is the sum after the following loop terminates? int sum=0 int ittem =0 do { item++; if(sum>=4)continue; } while(item
Find out the conjugate acid-base pairs : If the titration of a 25 mL sample of calcium hydroxide requires 34.45 mL of a 0.100 M HCl, what is the molarity of the base. 1. Determine the conjugate acid-base pairs in each of the following reactions:
Design a modular pro-gram : There are three seating categories at a stadium. For a softball game, Class A seats cost $15, Class B seats cost $12, and Class C seats cost $9. Design a modular pro-gram that asks how many tickets for each class of seats were sold, and then dis-p..
Write a class encapsulating a course : I must include a constructor, the accessors and mutators, and methods toString and equals. As part of this assignment, I have to write a client class to test all the methods

Reviews

Write a Review

Macroeconomics Questions & Answers

  What action does govt sometimes take to prevent a fall

(b) Provide an example of the interaction between each of these groups. (c) Sometimes a fourth group is included. What would that group be. Provide an example of the interaction between this and the groups listed in your answer to (a).

  Elucidate the differences among the two and why economics

Microeconomics and macroeconomics: Elucidate the differences among the two and why economics is divided into these two subdivisions.

  The microsoft trial has been only one of the biggest

The Microsoft trial has been only one of the biggest investigations of antitrust behavior as the turn of the century.

  Estimates that where the elasticity of demand can be

suppose that you are an intern for a state legislature that is considering how to vote on a bill that would legalize marijuana. An economist has testified that legalization would decrease the price of marijuana by 80% in his estimation.

  Why government will fix macroeconomic failure

Fiscal policies can work only if private enterprises respond to them in certain way; if they respond in other ways, the policies fail. Explain and give examples.Can the government make things worse by intervening in markets Are there other options..

  Market imperfection associated with negative externalities

An essay on Market imperfection associated with negative externalities.

  Describe the reagan restoration

Two days after his death, the Wall Street Journal ran a lengthy editorial tribute to Ronald Reagan, in the editors' estimation the most important president since FDR. In their paean to the fortieth president, Reagan gets credit for everything from..

  Minimum wage set at the competitive level

Describe how the equilibrium in a labor market with a monoposony employer changes if a minimum wage is set at the competitive level.

  Explain how does the timing of lay-off and hiring decisions

Explain how does the timing of lay-off and hiring decisions made by firms explain the misleading characteristic of this indicator.

  Eight guiding principle of markkula center

As derived from the Markkula Center for Applied Ethics, which of the following should be one of eight guiding principles.Compliance with the law in every situation or else.

  What is meant by a built-in stabilizer

Explain the tools used to pursue expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate Explain what is meant by a built-in stabilizer and give two examples

  Calculating marginal cost

If the demand elasticity for a product is -2, and a profit-maximizing company sells the product for $10, determine its marginal cost?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd