Assume an open mixed economy assume the mpc is 7 assume a, Ask an Expert

Economics

Assume an open, mixed economy. Assume the MPC is .7. Assume a stimulus package of $100 billion has been approved by Congress and the money has been spent. In order to pay for those expenditures, Congress also approved a $100 billion increase in individual income taxes. Will these actions by Congress expand or contract the economy or are they just useless actions? Get started early and work with your class members to solve this problem.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91407807

Have any Question?Write your Review or question?

Related Questions in Business Economics

A mood questionnaire has been established so that the

A mood questionnaire has been established so that the scores form a normal distribution with μ = 50 and σ = 15. A psychologist would like to use this test to examine how the environment affects mood. A sample of N = 25 i ...

In 2018 aman gave his church 50000 in cash he also gave his

In 2018 Aman gave his church $50,000 in cash. He also gave his alma mater university another $70,000 of appreciated stock (basis of $18,000). Aman's AGI is $200,000. What is Aman's charitable deduction for 2018?

Suppose that the value of the us dollarnbsp yesterday

Suppose that the value of the US dollar? ($) yesterday was? $1 = 4 yen. Today the exchange rate changed such that? $1 = 2 Yen. Given that the US dollar has? depreciated, the aggregate demand in the United States should A ...

Why was the federal reserve system set up with 12 regional

Why was the Federal Reserve System set up with 12 regional banks rather than one central bank as in other countries? Why was it made an independent quasi-governmental body and not a direct part of the federal government?

During the winter ofnbsp2008-2009 the average utility bill

During the winter of? 2008-2009, the average utility bill for residents of a certain state was ?$173 per month. A random sample of 30 customers was selected during the winter of? 2009-2010, and the average bill was found ...

1 explain the different elements of property rights provide

1. Explain the different elements of property rights. Provide an example of how the US economy infringes on each. 2. Explain why inequality is considered to be a social "bad" by many people. In what way could inequality ...

Coach steroid likes his players to be big fast and obedient

Coach Steroid likes his players to be big, fast, and obedient. If player A is better than player B in two of these three characteristics, Steroid will prefer A to B . Three players try out for quarterback. Wilbur ...

In the summer of 2013 walt disney released the lone ranger

In the summer of 2013, Walt Disney released The Lone Ranger, starring Johnny Depp and produced by Jerry Bruckheimer. The film bombed at the box office: Worldwide, it earned about $245 million in revenue, well below the $ ...

The abc movie theater has 300 seats in a typical month 25

The ABC movie theater has 300 seats. In a typical month, 25 percent of the seats are sold. The price elasticity is estimated to be -0.9. The price of a ticket is $8.00. The manager wants to increase the attendance to 30 ...

Test the following hypotheses of the difference in

Test the following hypotheses of the difference in population means by using the following data (α = .10) H0: µ1- µ2=0, Ha: µ1- µ2 Sample 1 : X=51.3 σ2=52 n=31; Sample 2: X=53.2 σ2=60 n=32 Use the critical value method t ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert