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The accompanying table show how consumer's marginal propensities to consume in a particular economy are related to their level of income.
Income Range Marginal propensity to consume$0 - $20, 000 0.9$20, 001 - $40, 000 0.8$40, 001 - $60, 001 0.7$60, 001 - $80, 000 0.6Above $80, 000 0.5
a. suppose the government engages in increased purchases of goods and services. For each of the income groups in the accompanying table, what is the value of the multiplier that is, what is the "bang for the buck" from each dollar the government spends on government purchases of goods and services in each income group?
b. if the government needed to close a recessionary or inflationary gap, at which group should it primarily aim its fiscal policy of changes in government purchases of goods and services.
Assume that, from an initial equilibrium rank in the offer curve diagram, nation I imposes a tariff on country II's export good at the same time that customers in country II change their tastes toward wanting more of II's export good.
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One of your relatives advices to you that our nation should stop trading with other nations because imports take away jobs and lower our national well-being.
Choose a nation with international trade activities. Discuss the comparative advantage that would exist when selected nation has a margin of superiority.
Analyze the effects of trade theories, policies, and interventions on countries and multinational organizations and interpret the effects of macroeconomic variables on multinational organizations
The only win condition for H is to manufacture and no production by Company F. If Company F is going to manufacture, they will have a win-win situation with company H having losses
Assume that the government buys are increased from 100 to 150. How much does the IS curve shift? What are the new equilibrium interest rate and level of income? Describe it.
In 2008, the U.S. SEC eliminated the U.S. GAAP net income reconciliation requirement for foreign private issuers that adopt International Financial Reporting Standards. Do you agree with this decision?
In the first quarter of 2009, President Obama pushed his massive fiscal stimulus package of $862 (It was originally at $787 billion) through the Congress and later passed by the House and the Senate, whose centerpiece was spending most of this sti..
If Canada was a closed economy, would the amount by which the Bank of Canada would need to reduce the supply of money to accomplish this goal be greater or smaller than the amount it would need to reduce the supply of money.
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