What is value of marginal propensity to consume

Assignment Help Business Economics
Reference no: EM1369646

Q. You can use back of this page as scrap. I will not look at back when grading this quiz, so you should present your complete answers by questions. Consider following numerical example of simple Keynesian model with no government spending or taxes (all figures in $billions): C = 100 + 0.9 Y I = 50 a). What is value of marginal propensity to consume (MPC) in this model? Marginal propensity to save (MPS)?

 

 

Reference no: EM1369646

Questions Cloud

Explain what are the results of the actions of the companies : Explain What are the results of the actions of the companies and For instance, financial, public relations, or employee issues?
What are total revenues and marginal revenues : George, who owns and runs Tots Poses, expects to encounter an average of eight customers per day, each with a reservation price shown in following table. What are total revenues, average revenues and marginal revenues
Executives working for chinese boss : What cultural tendencies both Chinese and Western are adversely affecting the expatâ??s working relationship with management in China?
Determine the multiplier effect for open economy : Suppose that you have following open economy where C = 10 + 0.8(Y-T); I = 10; G = 10; T = 10 and imports and exports are given through IM = 0.3Y and X = 0.3Y* respectively
What is value of marginal propensity to consume : What is value of marginal propensity to consume (MPC) in this model Marginal propensity to save (MPS).
Explain how can a governance system interfere : Explain How can a governance system interfere or diminish the ability to align managerial and shareholder strategic outcomes in the short term and in the long term?
Functions of management : Functions of Management - Describe how management functions relate to my organization which is commercial construction
Write a program to solve to find loan on tv : Write a program to solve follwoing problem: A TV set is bought with loan of $563 to be paid off with 5 monthly payments of $116. Interest rate is 1 percent per month.
What happens to in short run : Show long run effect on In Phillips curve diagram. If expectations are rational and increase in money growth is announced, what happens to In short run.

Reviews

Write a Review

Business Economics Questions & Answers

  Illustrate what do you think will happen to these factors

Identify and explain five major factors that affect the demand for starbucks. Illustrate what do you think will happen to these factors over the next year.

  Find out industry profit-maximizing cost and quantity

Find out industry's profit-maximizing cost and quantity. Illustrate what is its profit. industry's production manager claims that industry's average cost of production in minimized at an output of 40 units.

  Elucidate how this can be possible in spite of the fact

Elucidate how this can be possible, in spite of the fact that the exchange itself creates nothing new the goods being traded are still the same as they were before being traded.

  Consumption function in terms of her annual income

Derive Chenyu's consumption function in terms of her annual income Y and initial wealth W according to the life-cycle model.

  Tax burden split between buyer also seller

Elucidate how is the tax burden split between buyer also seller.

  Largest import tariffs tax on imported goods is on shoes

Some of the largest import tariffs tax on imported goods is on shoes. Strangely, the cheaper the shoes, the higher the tariff.

  Indicate if gdp is affected

Indicate if GDP is affected, under what category and what happens to GDP Oklahoma cleans up after a devastating tornado.

  Find out the expected number of points resulting

Find out the expected number of points resulting from the one on one. Compare this with the expected number of points from a two shot foul, where the second shot i always given.

  Elucidate how inventory model fits this situation

Assuming the basic fixed-order quantity inventory model fits this situation and no safety stock is needed, which of the following is the reorder point (R).

  Find out the optimal price-quantity

Find out the optimal price-quantity if the firm can price discriminate but cannot charge a two part tariff.

  Illustrate what would be a simple options strategy

Illustrate what would be a simple options strategy utilizing a put and a call to exploit your conviction about the stock price"s future movement.

  David also ellen live in rent-controlled apartments

If David also Ellen live in rent-controlled apartments, illustrate what is the equilibrium cost for the non-rent-controlled apartments.

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