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Question: Answer the following questions about marginal propensity to consume and the multiplier. First provide the correct equation and then show your work to arrive at the answer:
What is the marginal propensity to consume when consumption changes from 7 to 6 and disposable income changes from 5 to 3?
If disposable personal income is 10 and consumption is 12, what is personal savings? What does this mean?
What is the multiplier when the change in equilibrium level of real GDP in the aggregate expenditures model is 9, and change in autonomous aggregate expenditures is 3?
What is the multiplier when the marginal propensity to save is 1/3?
What would happen to the marginal propensity to save when a tax cut was enacted causing the multiplier to change to 5?
The assignment focused on aspects of marginal propensity and multiplier effect and in addition to this using formula of two items calculated the sum.
The project for this course is to identify forecasts of three key macroeconomic variables from publically available sources and write a report in which you describe the rang
Describe what will happen in this market as it moves to a new equilibrium. If a hard freeze eliminates Brazil's premium coffee crop, what will happen to the price of premium
Suppose that the unemployment rate is 6.5% and current-dollar GDP is $1,45 billion. Using Okun’s Law, what would be the potential GDP number corresponding to a natural unemplo
In theory, fiscal policy can be used to prevent inflation and avoid recession. But, in practice there are many limitations of using fiscal policy. Discuss the statement.
Explain the causes of recent recession and when it started and when it technically ended. Finally why the recent recession was called the worst recession after the great depre
Explain briefly how the auction can be treated as a Bayesian game. What is a (pure) strategy of a bidder?- Define a pure strategy Bayesian Nash equilibrium of the above biddin
A United State corporation CTM borrows $1,500,000 at LIBOR + 125bp p.a. on a 6M rollover basis from a London bank. If 6M LIBOR is 4 1/2%
What is the velocity of money if the nominal interest rate is constant? How will the level of the velocity of money change if there is a permanent (one time) increase in the
The following criteria will be used to grade the papers: Correct equations are used and shown, Explanations are correct, Calculations are correct. Answers are correct.
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