![Is an increase of the government budget deficit most likely to result in an increase in which ones of the following indicators (at least one)? [3p] 3. i. The marginal propensity to consume ii. Imports ii. The nominal interest rate iv. The money supply v. The fiscal multiplier Explain your choice.](http://img.homeworklib.com/questions/292280b0-741f-11ea-a725-b9c30850f00d.png?x-oss-process=image/resize,w_560)
PLEASE JUSTIFY THE ANSWER CLEARLY THANKS A LOT
Homework Answers
An increase in budget deficit indicates expansionary fiscal policy where taxes are lowered and expenditure is incurred.
As result following parameters tend to increase :
- MPC because disposable incomes rise and consumption amongst consumers rise
- Money supply increase as government incurrs expenditure on health schemes and various other schemes
- Fiscal multiplier also increased as national income and national expenditure both increase.
Add Answer to:
PLEASE JUSTIFY THE ANSWER CLEARLY THANKS A LOT
Is an increase of the government budget deficit...
PLEASE ANSWER ALL THE POINTS AND WRITE CLEARLY AND EXPLAIN .. THANKS A LOT Assume that...
PLEASE ANSWER ALL THE POINTS AND WRITE CLEARLY AND EXPLAIN ..
THANKS A LOT
Assume that the country of Rokovoko is a closed economy and it is currently in a situation of short and medium run equilibrium. 1. Assume that the government of Rokovoko wants to decrease the public deficit without decreasing the level of public expenditures a. i. ii. Which policy should the government adopt? [2pl Explain the short-run effects of this policy on interest rate, money demand, and...
Which of the following is an example of fiscal stimulus? Multiple Choice an increase in government...
Which of the following is an example of fiscal stimulus? Multiple Choice an increase in government spending on new military jet fighters an increase in consumption because of improved consumer confidence an increase in personal income taxes for families with children an increase in the purchase of office buildings by foreign investors If consumers spend 98 cents out of every extra dollar received, the Multiple Choice marginal propensity to consume is 98. marginal propensity to save is 1.02. marginal propensity...
PLEASE ANSWER ALL THE POINTS AND WRITE CLEARLY AND JUSTIFY THE ANSWERS THANKS A LOT Assume...
PLEASE ANSWER ALL THE POINTS AND WRITE CLEARLY AND JUSTIFY THE
ANSWERS THANKS A LOT
Assume that the country of Flatland is a closed economy and it is currently in a situation of short and medium run equilibrium. 1. a. Assume that the Central Bank of Flatland wants to increase the short-term interest rate i. Identify the open market operation that the Central Bank would use. [2p] ii. Is there any alternative to an open market operation? Explain. [2p] ii...
Q60. If the government increases spending and raises taxes by just enough to finance this increase...
Q60. If the government increases spending and raises taxes by just enough to finance this increase it will-------------------- a. Reduce output b. increase the MPC c. leave output unchanged d. increase output Q61. Starting from a balanced budget, for a given tax rate, an increase in income will cause the government budget to a. Remain unchanged b. move into surplus c. move into deficit d. both b and c Q62. For given government spending and taxation, the government budget deficit...
PLEASE ANSWER ALL THE POINTS AND WRITE CLEARLY AND JUSTIFY THANKS Consider the following algebraic version...
PLEASE ANSWER ALL THE POINTS AND WRITE CLEARLY AND JUSTIFY
THANKS
Consider the following algebraic version of the IS-LM model C 200+0,5 YD (C is consumption, YD is disposable income); G (public spending) 100; T (taxes) 100 1. 350 4000i +0,1 Y (I is investment, i is interest rate, Y is real income). Real demand for money: md-0,5 Y-7500, real money supply: (MVP-mf-250; (i) Write the equations that represent the IS and LM relations. [3pl (ii Find the equilibrium values...
B,c,d,e please solve Suppose in the economy autonomous consumption - $100, autonomous investmen $120, government purchases...
B,c,d,e please solve
Suppose in the economy autonomous consumption - $100, autonomous investmen $120, government purchases G-$400 lump-sum taxes = $70, transfers Tr-$20, exports Er $150 autonomous imports im = $30, marginal propensity to consume mpc = 0.8, proportional income tax rate 1-20%, marginal propensity to invest mpi-0.1, and marginal propensity to imports mpm-0.4 (a) For this economy calculate (i) the amount of autonomous spending: (ii) the value of the spending multiplier; (iii) the equilibrium level of output; (iv) the...
PLEASE ANSWER ALL THE POINTS AND JUSTIFY THE ANSWER CLEARLY THANKS The government approves an anti-trust...
PLEASE ANSWER ALL THE POINTS AND JUSTIFY THE ANSWER CLEARLY
THANKS
The government approves an anti-trust law that improves market competition by regulating anti-competitive conduct by companies. 3. a. b. c. d. How does this measure affect nominal wages and real wages in the short run? [3p] Explain how income, interest rate and price level have changed in the short run equilibrium. [4pl Explain the adjustment process from the short-run to the medium-run equilibrium. [4p] Does the capital and labor...
Please answer and write clearly thanks a lot Suppose a negative exogenous consumption shock affects the...
Please answer and write clearly thanks a lot
Suppose a negative exogenous consumption shock affects the economy. In which of the following cases, the economic recession will be stronger in the short run? 2. a. The propensity to consume is 60% (of the disposable income) b. The propensity to consume is 75% (of the disposable income) Motivate your answer considering the goods market model. [5p]
Suppose that marginal propensity to consume is equal to 0.8 .The government has the balanced budget...
Suppose that marginal propensity to consume is equal to 0.8 .The government has the balanced budget right decide to increase government spending by $100 billion. This increase in spending is partially financed by a $50 billion They now. increase in taxes. Answer following questions: a) As a result of this, what happen to GDP? b) As a result of this, what happen to government budget (still we have the balanced one, or it creates deficit or it creates any unbalanced...
PLEASE JUSTIFY THE ANSWER CLEARLY 4. Indicate which of the following circumstances will cause an increase...
PLEASE JUSTIFY THE ANSWER CLEARLY
4. Indicate which of the following circumstances will cause an increase in the money supply: [5p] i. A sale of bonds by the central bank. ii An increase in the reserve-deposit ratio. iii. A shift in public preferences against holding cash and in favor of holding deposits. iv. An increase in the foreign interest rate in a fixed exchange rate regime. v. The four cited circumstances. (justify your answer)
PLEASE ANSWER ALL THE POINTS AND WRITE CLEARLY AND EXPLAIN ..
THANKS A LOT
Assume that the country of Rokovoko is a closed economy and it is currently in a situation of short and medium run equilibrium. 1. Assume that the government of Rokovoko wants to decrease the public deficit without decreasing the level of public expenditures a. i. ii. Which policy should the government adopt? [2pl Explain the short-run effects of this policy on interest rate, money demand, and...
PLEASE ANSWER ALL THE POINTS AND WRITE CLEARLY AND JUSTIFY THE
ANSWERS THANKS A LOT
Assume that the country of Flatland is a closed economy and it is currently in a situation of short and medium run equilibrium. 1. a. Assume that the Central Bank of Flatland wants to increase the short-term interest rate i. Identify the open market operation that the Central Bank would use. [2p] ii. Is there any alternative to an open market operation? Explain. [2p] ii...
PLEASE ANSWER ALL THE POINTS AND WRITE CLEARLY AND JUSTIFY
THANKS
Consider the following algebraic version of the IS-LM model C 200+0,5 YD (C is consumption, YD is disposable income); G (public spending) 100; T (taxes) 100 1. 350 4000i +0,1 Y (I is investment, i is interest rate, Y is real income). Real demand for money: md-0,5 Y-7500, real money supply: (MVP-mf-250; (i) Write the equations that represent the IS and LM relations. [3pl (ii Find the equilibrium values...
B,c,d,e please solve
Suppose in the economy autonomous consumption - $100, autonomous investmen $120, government purchases G-$400 lump-sum taxes = $70, transfers Tr-$20, exports Er $150 autonomous imports im = $30, marginal propensity to consume mpc = 0.8, proportional income tax rate 1-20%, marginal propensity to invest mpi-0.1, and marginal propensity to imports mpm-0.4 (a) For this economy calculate (i) the amount of autonomous spending: (ii) the value of the spending multiplier; (iii) the equilibrium level of output; (iv) the...
PLEASE ANSWER ALL THE POINTS AND JUSTIFY THE ANSWER CLEARLY
THANKS
The government approves an anti-trust law that improves market competition by regulating anti-competitive conduct by companies. 3. a. b. c. d. How does this measure affect nominal wages and real wages in the short run? [3p] Explain how income, interest rate and price level have changed in the short run equilibrium. [4pl Explain the adjustment process from the short-run to the medium-run equilibrium. [4p] Does the capital and labor...
Please answer and write clearly thanks a lot
Suppose a negative exogenous consumption shock affects the economy. In which of the following cases, the economic recession will be stronger in the short run? 2. a. The propensity to consume is 60% (of the disposable income) b. The propensity to consume is 75% (of the disposable income) Motivate your answer considering the goods market model. [5p]
Suppose that marginal propensity to consume is equal to 0.8 .The government has the balanced budget right decide to increase government spending by $100 billion. This increase in spending is partially financed by a $50 billion They now. increase in taxes. Answer following questions: a) As a result of this, what happen to GDP? b) As a result of this, what happen to government budget (still we have the balanced one, or it creates deficit or it creates any unbalanced...
PLEASE JUSTIFY THE ANSWER CLEARLY
4. Indicate which of the following circumstances will cause an increase in the money supply: [5p] i. A sale of bonds by the central bank. ii An increase in the reserve-deposit ratio. iii. A shift in public preferences against holding cash and in favor of holding deposits. iv. An increase in the foreign interest rate in a fixed exchange rate regime. v. The four cited circumstances. (justify your answer)
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago