Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Macroeconomics Expert

If the government increases its purchases of goods and services by $3,000 and the MPC is 0.8, GDP and income will eventually increase by

  1. A $2,400
  2. B $6,000
  3. C $15,000
  4. D $24,000 

What formula should I use? a detailed solution would be really helpful too!

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M92603966
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Macroeconomics

Question - the supply and demand curves for a given

Question - The supply and demand curves for a given commodity are given by S(p) = 0.02(1 + p) 2 and D(p) = 10e -0.02 p where S(p) and D(p) are quantities and the price p is measured in dollars. Use the Malaren's series e ...

Question assume that a firm has a monopoly its demand curve

Question: Assume that a firm has a monopoly. Its demand curve is given by the equation P = 60 - Q. It produces its output subject to the following short-run cost equation: C = Q 2 + 20. a. Draw a graph of the monopolist' ...

Question - explain why it is important to evaluate the

Question - Explain why it is important to evaluate the overall performance of the firm's sales force and list the advantages and disadvantages of sales, cost, and profit analyses. Also, discuss the use of ROI in measurin ...

Question please do it by type not pic1 beginning in a state

Question: Please do it by type not pic. 1. Beginning in a state of equilibrium in our consumer equilibrium model (food is situated on the Y-axis and beverage on the X-axis). Graphically illustrate the income and substitu ...

Question - quasimodo consumes earplugs and other things his

Question - Quasimodo consumes earplugs and other things. His utility function for earplugs (E) and other consumption (C) is given by U(E, C) = 100E - (E^2)/2 + C Normalize the price of a unit of other consumption, C, to ...

Question 1 otrue or xfalse1 a trade-off is a principle for

Question: 1. O(True) or X(False) 1. A trade-off is a principle for market activities. 2. A manager's salary is the opportunity cost. 3. A trade provides a division of labor. 4. The market failure always results in the ne ...

Questions 1 in country faraway cigarettes are forbidden so

Questions: 1. In Country Faraway, cigarettes are forbidden, so people trade cigarettes in a blackmarket. The cigarette demand is QD = 12 - P, and the cigarette supply is Qs = 2P. a. Find the equilibrium price and quantit ...

Question assume two countries a and b with sizes of

Question: Assume two countries, A and B, with sizes of domestic markets 300 million and 533 1 3 million units in annual sales, respectively. In this market, firms compete by differentiating their product, while the cost ...

Question 1 true or xfalse1 opportunity cost is the cost for

Question: 1. (True) or X(False) 1. Opportunity cost is the cost for obtaining an opportunity. 2. Positive economics is an economic activity for positive results. 3. Beef and chicken are Normal Goods. 4. Peanut Butter and ...

Question - jacks faces the following demand function for

Question - Jack's faces the following demand function for its Jack in the Boxes: Q = 13000 - 8P. Jack produces the Jack in the Boxes in two facilities. The cost functions in each facility are: TC1 = 110,000 + 40Q1 + .09Q ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As