User Account

All Pages

Determine the value of the multiplier of this economy

Assignment Help Other Subject
Reference no: EM131445383

Income Determination

The following information describes a hypothetical economy (assume all numbers are in billions, if necessary).

C = 100 + 0.75 DI Ig = 875 G = 925 Xn = -150

Please answer the following questions:

1. What is the value of the MPC of this economy? Explain.

2. Determine the value of the multiplier of this economy.

3. Determine the value of the equilibrium GDP (Y) in this economy.

4. What is the level of consumption in the economy?

5. What is savings in the economy?

6. What will be the effect on equilibrium GDP (Y) and consumption (C) if government spending (G) increases by 50?

Reference no: EM131445383

Questions Cloud

Compute the equilibrium tax rate : Compute the equilibrium tax rate and the equilibrium levels of consumption, the trade balance, private savings, the primary and secondary is deficits, and the current account in periods 1 and 2
Pension fund investments instead of going through employer : Following the Enron debacle, which resulted in employees losing 100% of their 401(k), Congress enacted new laws to protect investors in various areas, including appropriations of pension funds. In your view, should employees take responsibility for t..
Explain conversion value approach : You are valuing an industrial firm whose enterprise value is $10.0 billion. The company has no straight debt but does have 100,000 convertible bond outstanding.
What is the net asset value of the fund : A mutual fund owns 500 shares of X currently trading at $ 12, and 300 shares of Y, currently trading at $ 24. The fund has 800 shares outstanding. What is the Net Asset Value of the fund ?
Determine the value of the multiplier of this economy : Please answer the following questions: What is the value of the MPC of this economy? Explain. Determine the value of the multiplier of this economy. Determine the value of the equilibrium GDP (Y) in this economy
Constant growth valuation woidtke manufacturings stock : Constant Growth Valuation Woidtke Manufacturing's stock currently sells for $32.50 a share. The stock just paid a dividend of $1.04 a share (i.e., D0 = $1.04), and the dividend is expected to grow forever at a constant rate of 4.65% a year. What stoc..
What is the value per share of boehms stock : Constant Growth Valuation Boehm Incorporated is expected to pay a $3.50 per share dividend at the end of this year (i.e., D1 = $3.50). The dividend is expected to grow at a constant rate of 11.10% a year. The required rate of return on the stock, rs,..
What is marineco equity value : MarineCo has no debt but does have unfunded pension liablities valued at $200 Million, recorded as long term other liability, MarineCo has detailed in its annual report a potential legal judgement of $100 Million for defective engines.
The net interest income from foreign assets and liabilities : Assume that a bank has assets located in the EU worth 101 million euros, on which it earns an average of 9% per year. The bank has 76 million Euros in liabilities on which pays an average of 5% per year. The spot exchange rate is 0.76 euros/$. Given ..

Reviews

Write a Review

Other Subject Questions & Answers

  Assignment on yeast culture lab

Yeast Culture Lab

  Compute the quantity of ice

How much ice at a temperature of -17.7 C must be dropped into the water so that the final temperature of the system will be 220 C ?

  What key characteristics differentiate managerial capitalism

What key characteristics differentiate managerial capitalism or Fordism from Toyotism based on flexible manufacturing?

  Inflammatory cells would be expected in a renal biopsy

A 58 year old woman with diabetes mellitus presents with a 2 month history of inflammation affecting her left kidney. an accumulation of which of the following inflammatory cells would be expected in a renal biopsy?

  Discuss potential costs and benefit of your preferred policy

Discuss the potential costs and benefits of your preferred policy. Be sure to identify who bears the costs and who reaps the benefits.

  Mid-sized manufacturing and distribution facility

You have to send a mid-level manager to Australia to open a mid-sized manufacturing and distribution facility. The assignment is for a 3-year period. What characteristics would this manager need to have to be successful in this role?

  Who was the stalinist leader that ruled hungary

Who was the Stalinist leader that ruled Hungary before (and after)and was then condemned by the new Soviet leadership for excessive use of terror and the cultivation of a personality cult, amongst other things

  Role of value conflicts and assumptions

Give an explanation of the role of value conflicts and assumptions in arguments, why it is important to locate and analyze them

  Discuss the existential view of death

Discuss the existential view of death as a significant variable in living fully. How might an existential practitioner focus on this reality in group counseling

  Explain the pricing policy taken by apple

Describe what do you understand by the term "Cost plus Pricing "and highlight any limitations this may have. How does this differ from "Target Costing "pricing - Describe the type of pricing policy being applied by Hewlett- Packard in regard to the..

  Emphasis should be on background of the individuals studied

During the course, you will have learned that many theories on criminal behavior overlap, and that it is not uncommon for more than one theory to explain why the criminal act(s) occurred. Your paper should apply these theories of criminal behavi..

  Earths land surface during an ice age

One million years ago ice sheets covered much of the Earth’s land surface during an ice age. How did this affect the salinity of the oceans? When a valley glacier retreats, ice flow within the glacier

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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