What happens to the interest rate and investment

Assignment Help Macroeconomics
Reference no: EM13208254

Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on the marginal propensity to consume?

Reference no: EM13208254

Questions Cloud

Assume that the input to each statement is the same : Assume that the input to each statement is the same: 5 28 36 a. cin >> x >> y >> ch; b. cin >> ch >> x >> y; c. cin >> x >> ch >> y; d. cin >> x >> y; cin.get(ch);
How is money supply affected if central bank prints sheckels : Currency held by the public is 1000 sheckels, bank reserves are 200 sheckels, and the desired reserve-deposit ratio is 0.2. What is the money supply How is the money supply affected if the central bank prints 100 sheckels
Can the capability also be used to install windows 7 : What Windows Server 2008 capability enables them to do the mass installation quickly and efficiently? What general steps are involved in setting up this capability? Can the capability also be used to install Windows 7 on the 24 new client workstat..
Explain dilute to mark with water and mix : dilute to mark with water and mix. (You will need the extra volume of this most concentrated solution for further studies.) Record your actual standard concentrations accounting for the dilution as Cstd1, Cstd2, Cstd3, and Cstd4, respectively.
What happens to the interest rate and investment : Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change Does your answer depend on the marginal propensity to consume
What is the sum after the following loop terminates : What is the sum after the following loop terminates? int sum=0 int ittem =0 do { item++; if(sum>=4)continue; } while(item
Find out the conjugate acid-base pairs : If the titration of a 25 mL sample of calcium hydroxide requires 34.45 mL of a 0.100 M HCl, what is the molarity of the base. 1. Determine the conjugate acid-base pairs in each of the following reactions:
Design a modular pro-gram : There are three seating categories at a stadium. For a softball game, Class A seats cost $15, Class B seats cost $12, and Class C seats cost $9. Design a modular pro-gram that asks how many tickets for each class of seats were sold, and then dis-p..
Write a class encapsulating a course : I must include a constructor, the accessors and mutators, and methods toString and equals. As part of this assignment, I have to write a client class to test all the methods

Reviews

Write a Review

Macroeconomics Questions & Answers

  The cross-price elasticity of demand between perf or bork

data collected in the imaginary economy of karabekiar reveals that when price of bork increased by 20%, the quantity of bork sold decreased by 15%.

  In a monopolistically competitive marketplace

In a monopolistically competitive marketplace, a firm has market power because it produces a differentiated product. This means that the firm earns positive economic profit in the long run.

  Suppose you are the owner-manger of an innovative computer

Suppose you are the owner-manger of an innovative computer software company, and your latest product is so revolutionary.

  Elucidate how nominal gdp and real gdp would differ

If the price changes above occurred for all goods across the economy during the four year period, elucidate how nominal GDP and real GDP would differ.

  Determine official unemployment rate

Suppose the following information for a country: total population, 500; population under 16 years of age are institutionalized, 120; not in labor force, 150; unemployed, 23, part-time workers looking for full time jobs.

  A monopolist has a constant marginal also average price

A monopolist has a constant marginal also average price. Compute the monopolist's profit maximizing quantity, price also profit.

  What is the value price elasticity of demand

What is the value price elasticity of demand.

  Is the supply affected for some reason

How will the equilibrium price and quantity in the market for WHEAT be affected when farmers growing soybeans experience a decrease in the price of soybeans. The big thing that confuses me is if wheat and soybeans are substitute or complimentary pr..

  Describe exhaustive and non-exhaustive expenditures

Describe what economists mean when they say government purchases are 'exhaustive' expenditures whereas government transfer payments are 'nonexhaustive' expenditures.

  How the smokers will consume the same number of cigarettes

While there are many arguments both for and against this view, some find the following argument to be most persuasive of all: "The laws of supply and demand indicate that higher cigarette prices are ineffective in reducing smoking.

  Describe the relative impact that every variable

Describe the relative impact that every variable has on the demand. What implications do these results have for the firm's marketing and pricing policies.

  Illustrtae what are the nominal rate of interest

Illustrtae what are the nominal rates of interest for both the United States and the euro area?

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