Calculate the change in income

Assignment Help Business Economics
Reference no: EM13982794

Autonomous aggregate expenditures decreases by $200 million, the marginal propensity to consume is 0.50, marginal propensity to invest is 0.25, and the marginal propensity to import is 0.10. Calculate the change in income.

Reference no: EM13982794

Questions Cloud

Perfect competition has a total cost function : A firm in perfect competition has a Total Cost function of TC = 5Q^2 - 10Q + 20. If the current Price (P) = $5: What is the current quantity and profit? Will firms enter or leave the industry?
How much work does the up escalator do on you when you ride : How much work does the up escalator do on you when you ride it from the lower level to the upper level? How much work does the down escalator do on you when you ride it from the upper level to the lower level?
How to use fiscal policy to address recession : Unemployment and how to use Fiscal Policy to address Recession. Background for this question: The US economy is currently experiencing recession according to the Federal Government. You can use only Fiscal Policy and the AD – AS model. 1. Using Fisca..
Attempt to buy additional stock from other stockholders : Two shareholders of Bruce Co., Harry and Yolan Gilbert, were fightging management for control of the company. They asked for permission to inspect Bruce's stockholder list so they could either solicit support for their slate of directors at the upcom..
Calculate the change in income : Autonomous aggregate expenditures decreases by $200 million, the marginal propensity to consume is 0.50, marginal propensity to invest is 0.25, and the marginal propensity to import is 0.10. Calculate the change in income.
Signal board protected by the business judgment rule : An appraiser valued a subsidiary of signal co. at between $230 million and $260 million. Six months later, Burmah Oil offered to buy the subsidiary at $480 million, giving Signal only three days to respond.  Members of the board were sophisticated, w..
How much value will the firm gain or lose if project l : How much value will the firm gain or lose if Project L is selected over Project S, i.e., what is the value of NPVL - NPVS?
Calculate the electrical potential difference over distance : Two resistors of values 6.0 ohm and 12.0 ohm are connected in parallel. This combination is hooked in series with a 2.0 ohm resistor and a 24.0V battery. What is the voltage (in V) across the 2.0 ohm resistor?
Value of private consumption : Assuming that this value is the mean of a normal distribution, and that the standard deviation of the distribution is 3%, what is the value of private consumption as share of GDP such that you are 90% sure that the actual value falls below it?

Reviews

Write a Review

Business Economics Questions & Answers

  Determine effects of this on paths of aggregate consumption

Use the endogenous growth model to determine the effects of this on the paths of aggregate consumption and aggregate output overtime.

  New radius of the factorys market area

Now suppose the factory develops an innovation that allows it to produce a shirt for the equivalent of 1 loaf of bread. What is the new radius of the factory's market area.

  Most likely ask interest groups to help shape public policy

Why would legislators most likely ask interest groups to help shape public policy?

  Find the equilibrium price-quality and revenue

Find the equilibrium price (P), quality (Q), and revenue in a market characterized by the following equations:

  Define the hypothetico-deduction method of investigation

Companies are interested in acquiring other firms even when the latter operate in totally unrelated realms of business. For instancce, Highways Industries manufacturing asphalt materials for road construction, acquired VIP Transport Ltd

  Explain why does this happen fluctuating prices of gasoline

We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.

  Innovations are proven to pose no risks

Explain: Because it is better to be safe than sorry, ie to exhibit precaution, the government should ban adoption of technologies like genetically modified organisms and medicines like ebola treatments until such innovations are proven to pose no ris..

  Rent control is an example of a price ceiling

Rent control is an example of a price ceiling. Which of the following problems must be addressed under a rent control program?

  Historic confrontation between capitalism and socialism

Do you think there are lessons for American capitalism in Europe’s experience? Is it the other way around? Might both have things to learn? Do you think that the general acceptance of the market framework by Europe’s socialist parties signals an end ..

  What happens to consumer surplus

The demand curve for cookies is downward sloping. When the price of cookies is $2, the quantity demanded is 100. If the price rises to $3, what happens to consumer surplus?

  Qthe cost of hiring a new lab technician is 8000 per month

q.the cost of hiring a new lab technician is 8000 per month including fringes the cost of leasing additional testing

  Does this contradict the law of demand

You own a fresh vegetable stand. Last week you decided to raise your carrot prices from 79 cents per bunch to 99 cents per bunch. Subsequently, you noticed that several of your regular customers were buying 2 bunches instead of their usual one. In fa..

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