What will be its new level of real GDP

Assignment Help Business Economics
Reference no: EM13896612

Suppose that a certain country has an MPC of 0.9 and a real GDP of $400 billion. If its investment spending decreases by $4 billion, what will be its new level of real GDP?

Reference no: EM13896612

Questions Cloud

What is the present worth-interest rate in the marketplace : What is the present worth of a $50,000 bond that has an interest of 20% per year payable quarterly? The bond matures in 5 years. The interest rate in the marketplace is 10% per year, compounded semiannually.
What is the total principal paid to the lender : BioElectroMechanical Systems (BEMS) is a startup company with high potential and little available cash. They obtain $500,000 for necessary technology from a venture capitalist, who charges them 24% compounding monthly. How much are the monthly paymen..
What is the present worth of the cash flow stream : What is the present worth of the following cash flow stream? Assume 8% interest and an initial purchase price of $30,000 is included (4 pts)
What is the present worth of the lease-purchase project : A robotics system will be purchased for a factory. The lease-purchase costs is $100,000 per year. Warranties will also be purchased. The warranties start at $20,000 in year 5 and increase by $20,000 per year through the end of the lease. What is the ..
What will be its new level of real GDP : Suppose that a certain country has an MPC of 0.9 and a real GDP of $400 billion. If its investment spending decreases by $4 billion, what will be its new level of real GDP?
Contributing to the delinquency of a minor law : Mari Sue, who is 16, crashes her mother’s car. Her mother is responsible for the damages caused by her daughter under A. contributing to the delinquency of a minor law. B. family car doctrine. C. failure to exercise proper supervision law. D. none of..
What price will the price elasticity of market demand be : Jen, Eric, and Kurt are all buyers of chain saws. Jen’s demand function is DJ (p) = 520 − 13p, Eric’s demand function is DE(p) = 40 − p, and Kurt’s demand function is DK(p) = 200 − 5p. Together, these three constitute the entire demand for chain saws..
When an economy is under autarky the price of eggplant : When an economy is under autarky the price of eggplant is $5. The world price of eggplant is $3.50. If opened to the world market, would consumers or producers benefit? Would consumers or producers lose? Explain your reasoning (using a graph would be..
In what ways does the krugman model of trade differ : In what ways does the Krugman model of trade differ from the Heckscher-Ohlin model of trade? In what ways does the Linder theory of trade differ from the Heckscher-Ohlin model of trade?

Reviews

Write a Review

Business Economics Questions & Answers

  Production function for hogwarts remover-anti-magic potion

The production function for Hogwarts Remover, an anti-magic potion, has the form Q = K 0.5L 0.5 , where Q is in bottles per period and K and L are in machine-days and labour-days per period, respectively. a. Graph the unit isoquant (Q = 1) and the is..

  If a perfectly competitive firm is a price taker

If a perfectly competitive firm is a price taker, then

  Significantly lower financial savings for all individuals

As a general rule, is it safe to assume that a lower interest rate will encourage significantly lower financial savings for all individuals? Explain.

  Relation data-sets as well as extensive time series data

Economic data is a very broad concept. It can include discrete preference relation data-sets as well as extensive time series data. But it is important that theories are tested against data, and the earlier this happens in the development of an econo..

  What factor does this firm mark up price over marginal cost

A firm has $1,900,000 in sales, a Lerner index of 0.55, and a marginal cost of $50, and competes against 800 other firms in its relevant market. What price does this firm charge its customers? By what factor does this firm mark up its price over marg..

  Cartel to maximize total industry profits

Assume that the firms form a cartel to maximize total industry profits. Determine the optimum output as well as selling cost for each firm.

  Illustrate what are the major strengths of monetary policy

Illustrate what is the basic objective of monetary policy. What are the major strengths of monetary policy.

  How does the government of canada redistribute income

Illustrate what is the distinction between marginal revenue product also marginal revenue. How does the government of Canada redistribute income.

  What is the maximum annual withdrawal

A deposit of $ 40,000 is put in a savings account at an interest rate of 3%. The interest is compounded quarterly, Equal annual withdrawals are to be made from the account, beginning one year from now and continuing forever. What is the maximum annua..

  Only incremental cash flows are relevant in project analysis

Only incremental cash flows are relevant in project analysis, the proper incremental cash flows are the reported accounting profits, and thus reported accounting income should be used as the basis for investor and managerial decisions.

  Explain how changes in equilibrium occur

explain how changes in equilibrium occur as a result of changes in fiscal and monetary policy.

  Maker of home thermostats and smoke detectors

List the service that most likely to have network effects within 5 years. Google Fiber (providing GBit Internet access to homes) Purchase of Nest (maker of home thermostats and smoke detectors) Purchase of several robotics companies (Boston Dynamics,..

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