Suppose the current level of income is 600 billion the, Ask an Expert

Economics

Suppose the current level of income is $600 billion, "the" multiplier is 4, the marginal tax rate is 20 percent, and the current budget deficit is $20 billion. If government spending is increased to raise income to $630b, once equilibrium is attained the budget deficit will be

a) $20b or less

b) more than $20b but less than $22b

c) at least $22b but less than $27b

d) $27b or more

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91721542

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question imagine that you have decided to open a small ice

Question: Imagine that you have decided to open a small ice cream stand on campus called "Ice-Campusades." You are very excited because you love ice cream (delicious!) and this is a fun way for you to apply your business ...

Question baltimore is in the early stages of its north

Question: Baltimore is in the early stages of its "North Avenue Rising" project. Prior to the implementation, a basic cost-benefit analysis was conducted. You can access this report here or on ELMS. In class, we discusse ...

Question a genealogical firm called roots produces its

Question: A genealogical firm called Roots produces its output using only one input. Its production function is f(x) = vx. (a) Does the firm have increasing, constant, or decreasing returns to scale? (b) How many units o ...

Question regarding separation of ownership and control a

Question: Regarding separation of ownership and control, A major change in most corporate policies requires that a majority of stock shares that are voted favor it. Would you prefer that approval by a smaller (or possibl ...

Question research the role of an administrator in contrast

Question: Research the role of an administrator in contrast to a non-management staff member in regards to risk management of an ADA (Americans With Disabilities Act) or workers' compensation incident in a typical health ...

Question suppose that a student would go to 1 blue jays

Question: Suppose that a student would go to 1 Blue Jays game if the price were $120, 2 Blue Jays games if the price were $80, 3 Blue Jays games if the price were $50, and 4 Blue Jays games if the price were $20. What is ...

Question suppose the utility function for linda is given by

Question: Suppose the utility function for Linda is given by u(x1, x2) = log x1 + x2 and her budget constraint is given by p1x2 + p2x2 = m (a) Derive the demand function for Linda for both goods. (Hint: the demand of any ...

Question costco typically pays its workers higher wages

Question: Costco typically pays its workers higher wages than does Wal-Mart. One analyst argues that Costco pays higher wages "because it requires higher-skilled workers to sell higher-cost products to more affluent cust ...

Question identify and explain some of the challenges that

Question: Identify and explain some of the challenges that modernization theory faces When applied to Third World societies. What alternative theories have been promoted to explain the reasons for Third World poverty. Pl ...

Question many critics of government programs to help low

Question: Many critics of government programs to help low income individuals argue that these programs create a poverty trap. Explain how programs such as TANF, EITC, SNAP, and Medicaid will affect low-income individuals ...

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 Microeconomics Expert