Explain how much did investment change also illustrate what, Ask an Expert

Economics

Use Prodcution possibility frontier to illustrate the results of fiscal policy & how much consumption, investment & savings will change?

The Situation: Full employment income is estimated to be $11,000. The current interest rate is estimated to be 4.178 [irrcent. While last year total business investment spending was $900; the rising price of oil has caused expectations to deteriorate (see diagrammatic estimate). The year's federal budget is G=2000 and T=1000. The consumption function is estimated to be: C=500 + 0.75.YD. The Problem: Assessing the Results

Use a production possibility frontier to illustrate the probable results of your fiscal policy. By how much did consumption change? By how much did savings change? describe how much did investment change also illustrate what is the total amount of government borrowing? Where did the money come from?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M920428

Have any Question?Write your Review or question?

Related Questions in Business Economics

The risk-free rate is 6 and the expected rate of return on

The risk-free rate is 6% and the expected rate of return on the market portfolio is 13% a. Calculate the required rate of return on a security with a beta of 1.15. (Do not round intermediate calculations. Enter your an ...

The distribution of heights of adult american women is

The distribution of heights of adult American women is approximately normal with a mean of 64 inches and standard deviation of 2 inches. What percent of women is taller than 68 inches?

Please discuss your thoughts on the us governments role in

Please discuss your thoughts on the U.S. Governments role in protecting our financial markets. Do you think that the Federal Reserve and the Treasury Department should have saved the Wall Street Giants? What is your posi ...

Discuss three ranges of the aggregate supply curve explain

Discuss three ranges of the aggregate supply curve. Explain changes in the AD-AS macroeconomic equilibrium due to the aggregate demand shifts and due to aggregate supply shifts. Apply the AD-AS model to the two types of ...

1 a firms marginal rate of technical substitution atm p lm

1) A firm's marginal rate of technical substitution at M P L/M P = 3, and the ratio of prices of labor and capital ,w/r, is 4. a) Is the firm minimizing its cost? Why or Why not? b) What can it do to improve its situatio ...

You work for a large company with tens of thousands of

You work for a large company with tens of thousands of retail outlets throughout the world. The average sales at each retail outlet is $2,400,000 per year, with a standard deviation of $600,000. You want to put in place ...

Identify a recent mergeracquisition and use it to and

Identify a recent merger/acquisition and use it to and explain: was the merger/acquisition predominately about gaining economies of scale or economies scope?

How does the monopolies make production and pricing

How does the Monopolies Make Production and Pricing Decisions in Economics?

What is monetary approach in neoclassical economic theory

What is monetary approach in Neoclassical Economic Theory? How is poverty defined under the monetary approach? What are the two main reasons that cause poverty under Neoclassical Economic Theory? Briefly describe each on ...

Describe tim hortons experiences with mergersacquisitions

Describe Tim Hortons experiences with mergers/acquisitions. Did these combinations create or destroy value? Why?

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