Q1- Which of the foloowing will cause the investment-demand curve to shift to the right? A....
Homework Answers
1.An increase in expected rate of return from investment would increase the demand for investment and shift the investment demand curve to the right.
Answer-D
2.Greater government expenditure and/or lower taxes would increase aggregate demand to achieve economic stimulus.
Answer-A
3.Military spending is a non development autonomous expenditure.
Answer-D
4.Borrowing is low during recession,so interest rate is low.A lower interest rate does not crowd out private investment.
Answer-A
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Q1-
Which of the foloowing will cause the investment-demand curve to
shift to the right?
A....
1. If the government reduces spending A) the IS curve will shift to the right B)...
1. If the government reduces spending A) the IS curve will shift to the right B) output will increase if interest rates remain fixed C) consumption will increase D) all of the above 2. If the government cuts taxes A) disposable income falls B) planned expenditures rise C) the IS curve shifts to the left D) all of the above 3. Qualitatively, an increase in government purchases has the same impact as an increase in autonomous A) consumption B) investment...
Which of the following will cause the investment demand curve to shift to the right? Multiple...
Which of the following will cause the investment demand curve to shift to the right? Multiple Choice A decrease in interest rates. A decrease in the cost of labor. An improvement in technology. An increase in disposable income.
1.If an economy saves 50 percent of any increase in income, then an increase in investment...
1.If an economy saves 50 percent of any increase in income, then an increase in investment of $10 billion can produce an increase in income of as much as: A. $15 billion B. $10 billion C. $5 billion D. $20 billion 2. For a tax to be classified as proportional, it must be the case that A. As the tax base increases by a certain amount, the tax liability increases by a greater percent. B. As the tax base increases,...
factors that shift the AD Curve include A) government purchases B) autonomous investment C) taxes D)...
factors that shift the AD Curve include A) government purchases B) autonomous investment C) taxes D) all of the above E) none of the above 33. If government cuts taxes A) after tax income should increase shifting AD to the left to a lower cu B) after tax income should increase shifting AD to the right to a higher eq output C) after tax income and the equilibrium level of output remain unchanged D) after tax income remains unchanged but...
i need answers as soon as possible QUESTION 12 In the aggregate expenditure model if the...
i need answers as soon as possible
QUESTION 12 In the aggregate expenditure model if the government of Pasedonia decides to increase government spending by $ 100 billion and to finance this increase in government spending the government of Pasedonia increases taxes by $ 100 billion what effect will this have on the economy? (assume MPC 0.75) O A GDP stays the same B. GDP increases by $ 100 billion OC. GDP will increase by $ 400 billion OD. GDP...
QUESTION 12 In the aggregate expenditure model if the government of Pasedonia decides to increase government...
QUESTION 12 In the aggregate expenditure model if the government of Pasedonia decides to increase government spending by $ 100 billion and to finance this increase in government spending the government of Pasedonia increases taxes by $ 100 billion what effect will this have on the economy? (assume MPC=0.75) O A GDP stays the same OB GDP increases by $ 100 billion OC. GDP will increase by $ 400 billion D.GDP will decrease QUESTION 13 An example of an automatic...
1.The right rate of inflation for the economy—the rate at which no one really pays attention...
1.The right rate of inflation for the economy—the rate at which no one really pays attention to it—is a rate between: Multiple Choice −2 and 2 percent. −5 and zero percent. zero and 2 percent. 2 and 5 percent. 2. Suppose you are in the 39% marginal tax bracket. For every additional dollar earned, how much does the government get and how much do you keep? Instructions: Enter your responses rounded to two decimal places. The government gets: $ You...
Brenda earns $58,000 a year and pays an average annual tax rate of 15%. Instructions: Enter...
Brenda earns $58,000 a year and pays an average annual tax rate of 15%. Instructions: Enter whole numbers in each blank. a. Brenda's disposable income is $. and the amount of tax she pays to the government is $. b. Suppose a recession hits the economy and Brenda's income falls to $44,000 per year due to the fact that she is earning a smaller annual bonus. If she now pays an average annual tax rate of 12%, her disposable income...
Which of the following will cause a leftward shift in the aggregate demand curve? A. a...
Which of the following will cause a leftward shift in the aggregate demand curve? A. a reduction in the money supply B. an increase in taxes C. a reduction in government spending D. all of the above
1. When countries have severe debt problems: fiscal policy is an especially good idea. expansionary fiscal...
1. When countries have severe debt problems: fiscal policy is an especially good idea. expansionary fiscal policy can reduce real growth. it makes no difference for fiscal policy. they can continue to borrow forever without any adverse consequences. 2. Increases in government spending financed through additional borrowing will typically: lead to higher taxes. lead to higher interest rates. stimulate both consumption and investment. provide more stimulus than when government spending is financed through higher taxes. 3. In a recession, automatic...
1. If the government reduces spending A) the IS curve will shift to the right B) output will increase if interest rates remain fixed C) consumption will increase D) all of the above 2. If the government cuts taxes A) disposable income falls B) planned expenditures rise C) the IS curve shifts to the left D) all of the above 3. Qualitatively, an increase in government purchases has the same impact as an increase in autonomous A) consumption B) investment...
factors that shift the AD Curve include A) government purchases B) autonomous investment C) taxes D) all of the above E) none of the above 33. If government cuts taxes A) after tax income should increase shifting AD to the left to a lower cu B) after tax income should increase shifting AD to the right to a higher eq output C) after tax income and the equilibrium level of output remain unchanged D) after tax income remains unchanged but...
i need answers as soon as possible
QUESTION 12 In the aggregate expenditure model if the government of Pasedonia decides to increase government spending by $ 100 billion and to finance this increase in government spending the government of Pasedonia increases taxes by $ 100 billion what effect will this have on the economy? (assume MPC 0.75) O A GDP stays the same B. GDP increases by $ 100 billion OC. GDP will increase by $ 400 billion OD. GDP...
QUESTION 12 In the aggregate expenditure model if the government of Pasedonia decides to increase government spending by $ 100 billion and to finance this increase in government spending the government of Pasedonia increases taxes by $ 100 billion what effect will this have on the economy? (assume MPC=0.75) O A GDP stays the same OB GDP increases by $ 100 billion OC. GDP will increase by $ 400 billion D.GDP will decrease QUESTION 13 An example of an automatic...
Brenda earns $58,000 a year and pays an average annual tax rate of 15%. Instructions: Enter whole numbers in each blank. a. Brenda's disposable income is $. and the amount of tax she pays to the government is $. b. Suppose a recession hits the economy and Brenda's income falls to $44,000 per year due to the fact that she is earning a smaller annual bonus. If she now pays an average annual tax rate of 12%, her disposable income...
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