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Consider a hypothetical closed economy in which households spend $0.60 of each additional dollar they earn and save the remaining $0.40.
The marginal propensity to consume (MPC) for this economy is and the spending multiplier for this economy is
Suppose the government in this economy decides to increase government purchases by $400 billion. The increase in government purchases will lead to an increase in income, generating an initial change in consumption equal to _________ . This increases income yet again, causing a second change in consumption equal to _______ . The total change in demand resulting from the initial change in government spending is _______.
When reserve requirements are increased, the:
The price elasticity of demand for senior citizens purchasing coffee from McDonald's is -5 while non senior citizens have a price elasticity of demand equal to -1.25.
Firms that make game systems like Playstation and Nintendo typically charge a price close to average cost on the game system itself, and do not change that price even when the systems are scarce or demand increases. Why might this be a profit-..
Sam has the opportunity to purchase a US Treasury bond that matures in eight years and has a face value of $10,000. This means that Sam will receive 10,000 cash when the bond's maturity date is reached. In addition, the bond stipulates a fixed nomina..
who file a lawsuit on behalf of the government if they believe that a company has somehow defrauded the government Securities and Exchange Commission Occupational Safety and Health Administration False Claims Act corporate philanthropy social audi..
Explain and illustrate four ways in which government intervene in markets
Changes in inflation expectations and required real yields occurred?
If maria spends a fixed dollar amount per week on movie rentals regardless of changes in the price, mariaʹs demand for movie rental can be considered:
Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are inte..
use a graphical illustration to describe briefly what the influence of each of the following would be on the market
If the real wage can adjust to equilibrate labor supply and labor demand, what's the real wage. At this equilibrium what are output,employment, and the total wage of workers. congress cannot dictate ow many workers firms hire at the mandated wage.
Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,700 units.
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