User Account

All Pages

Find the marginal tax rate of this economy

Assignment Help Macroeconomics
Reference no: EM13134466

It is estimated that a particular economy has a multiplier of 2. The marginal propensity to import of the economy is 0.3, while the consumer's marginal propensity to save is 0.2.

(a) Find the marginal tax rate of this economy.

(b) The marginal propensity to import increases from 0.3 to 0.4. Find the new multiplier of the economy and explain why the multiplier has changed.

Reference no: EM13134466

Questions Cloud

Deductions independent contractors : Which of the following best describes the deductions independent contractors may claim for valid business reasons?
Determining co-finite topology : Let X be given the co-finite topology. Suppose that X is a infinite set. Is X Hausdorff? Should compact subsets of X be closed? What are compact subsets of X?
What property interest : What property interest did Dollars & Sense register under the Torrens system and how did it acquire that interest? How did that interest relate to Mrs Nathan? Why do you think Dollars & Sense registered its interest
Explain what is the name of the chemical used in sweet : What is the name of the chemical used in Sweet 'n Low? Draw the structure. Why was a temporary restriction placed on the use of this sweetener? What is the Delaney Amendment?
Find the marginal tax rate of this economy : The marginal propensity to import increases from 0.3 to 0.4. Find the new multiplier of the economy and explain why the multiplier has changed.
Calculate the moles of water removed : A 2.914-g sample of gypsum, a hydrated salt of calcium sulfate, CaSO4, is heated at a temperature greater than 170 Celsius in a crucible until a constant mass is reached.
Why null and alternative hypotheses to be mutually exclusive : Identify the parameter when converting a problem statement from verbal to numerical? Why do null and alternative hypotheses have to be mutually exclusive?
What information can the company gleam from this approach : What information can the company gleam from this approach which is helpful as a tool in the decision making process. Explain situations in which break-even analysis can be a useful tool. Provide a specific example.
What statement would the numbers be reflected on : Is this a GASB rule or a FASB rule? What statement would the numbers be reflected on?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Question on increase real gdp

Assume that the MPC is .8 and that $10 trillion of real GDP is currently being demanded. The government wants to increase real GDP demanded to $11 trillion.

  Determine profit maximizing or loss minimizing output

At a product price of $56, will this company produce in the short run? If it is preferable to manufacture, what will be the profit-maximizing or loss-minimizing output?

  Suppose the costs also benefits incur at the end of the year

Suppose the costs also benefits incur at the end of the year, should the city buy the trucks.

  Draw the graph and label to identify the market structure

Assume your boss purchase out every single pizza store in the US. Your cost-demand conditions are as follows: profit maximizing quantity - 60 pizzas; price - 20$ per piece;

  Utilizing the expectations hypothesis and the taylor rule

Utilizing the expectations hypothesis and the Taylor rule provide an interpretation of this comment in the article.

  Calculate the point price elasticity of demand

In effort to decrease excess end of the model year inventory, Oaktown Ford offered a 1 percent discount off the average price of 4WD Escape gas-electric hybrid SUV's sold during the month of August.

  Difference between long term and short term interest rates

In late June the Fed lowered its federal funds rate target from 1.25 percent to 1 percent. However between mid June and early August the yield on longer term 10 year Treasury notes rose from 3.1% to over 4.3%.

  What was the best level of emission reduction

Explain how would you decide also what was the best level of emission reduction. Why do you think your approach would be better than others.

  Illustrate what are the most important concepts

Illustrate what are the most important concepts you can learn in Economic Theory classes. How can you apply them to your life. What difference can these concepts make in your everyday life.

  State are you for or against free trade

State are you for or against free trade. Are you for or against NAFTA? What is the economic basis for trade

  Illustrate what is the reserve ratio if the bank

Illustrate what is the reserve ratio if the bank has $160 million worth of checking deposits, $32 million worth of reserves in deposits at its federal reserve district bank, and $8million worth of reserves in vault cash.

  Elucidate policy or policies may be required to ensure

Elucidate policy or policies may be required to ensure the rate of inflation is low

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