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MPC = 0.75. Calculate the spending multiplier and the tax multiplier
Spending multiplier = 2.5. Calculate the MPC and the tax multiplier
Tax multiplier = 4.0. Calculate the MPC and the spending multiplier
Business Economics, Economics
In lecture we discussed why the production possibilities frontier (the boundary of the production possibilities set) is bowed 'outwards'. When might the production possibilities set be bowed 'inwards'? Give an example of ...
What is the Central Limit Theorem? Why does it make the use of the common inferential tools possible even if the raw data is not distributed normally?
Suppose that Third National Bank has reserves of $20,000 and check able deposits of $200,000. The reserve ratio is 10 percent. The bank sells $20,000 in securities to the Federal Reserve Bank in its district, receiving a ...
Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium?
A cartel is branch of an oligopoly. There are still a handful of large firms and many smaller firms. For instance, the diamond industry and the petroleum industries are examples are oligopolies. However, the main differe ...
A report claims that for the investment portfolios with a single stock had a standard deviation of 0.57, while the returns for portfolios with 31 stocks have a standard deviation of 0.325. Explain how the standard deviat ...
You are given the sample mean and the population standard deviation. Use this information to construct the 90% and 95% confidence intervals for the population mean. A random sample of 44 gas grills has a mean price of ...
A manufacture makes makes two models of an item. Model 1 which accounts for 89% of unit sales, and model 2, which accounts for 11% of unit sales. Because of defects the manufacture has to replace (or exchange) 11% of its ...
Why are farmers paid so little? The price of agricultural goods like chickens and coffee has been falling for decades and the share going to farmers has also been falling. What is the "Global division of labor" in food ...
Fabric is cut into pieces. Mean=96.2 Standard deviation=0.2. Randomly select 20 pieces. Determine the probability that 19 or fewer have a length less than 96.5 inches. Determine the probability that all 20 are between 96 ...
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
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