Suppose that the marginal propensity to import decreases. Explain in a few sentences (typed in the...

Question

Question

Suppose that the marginal propensity to import decreases. Explain in a few sentences (typed in the box) the impact of this change on the multiplier.

business economics

Answer 1

Answer #1

Answer 2

Similar Homework Help Questions

25. Suppose the marginal propensity to consume is 0.63, the marginal propensity to import equals 0.08,...

25. Suppose the marginal propensity to consume is 0.63, the marginal propensity to import equals 0.08, and personal income taxes amount to 9 percent of GDP. The spending multiplier for this economy is equal to _____. a. 0.54 b. 0.80 c. 1.25 d. 1.41 e. 1.85
-Summer 2018/2019 multiplier b. A higher marginal tax rate and a higher marginal propensity to import...

-Summer 2018/2019 multiplier b. A higher marginal tax rate and a higher marginal propensity to import both decrease the size of the multiplier d. A higher marginal tax rate decreases the size of the multipller while a lower marginal propensity to import decreases the size of the
The ________ the marginal propensity to import, the ________ the expenditure multiplier. A. larger; smaller B....

The ________ the marginal propensity to import, the ________ the expenditure multiplier. A. larger; smaller B. smaller; smaller C. larger; more negative D. larger; larger E. None of the above is correct, because the expenditure multiplier is not related to the marginal propensity to import.

Suppose the marginal propensity to consume is 0.7 and the government votes to increase taxes by...

Suppose the marginal propensity to consume is 0.7 and the government votes to increase taxes by $1.5 billion. Round to the nearest tenth if necessary. Assume the tax rate and the marginal propensity to import are 0. Calculate the tax multiplier tax multiplier:-2.3 Calculate the resulting change in the equilibrium quantity of real GDP demanded -3.5 billion
Q. How do the marginal propensity to consume, the marginal propensity to import and the income tax ratio influence the m...

Q. How do the marginal propensity to consume, the marginal propensity to import and the income tax ratio influence the multiplier? How do fluctuation in autonomous expenditure influence real GDP?
The open economy multiplier is calculated as follows: A. 1/[1minus−(marginal propensity to consume + marginal propensity...

The open economy multiplier is calculated as follows: A. 1/[1minus−(marginal propensity to consume + marginal propensity to invest)] B. 1/[1minus−(marginal propensity to consume + marginal propensity to import)] C. 1/[1minus−(marginal propensity to consume + marginal propensity to invest + marginal propensity to import)] D. 1/[1minus−(marginal propensity to consume + marginal propensity to invest minus− marginal propensity to import)]

The following table shows alternative hypothetical economies and the relevant values for the marginal propensity to...

The following table shows alternative hypothetical economies and the relevant values for the marginal propensity to consume out of disposable income (MPC), the net tax rate (t), and the marginal propensity to import (m). a. Recall that z, the marginal propensity to spend out of national income, is given by the simple expression Z-MPC(1-1)-m. By using this expression, compute z and the simple multiplier for each of the economies and fill in the table. (Round your response to two decimal...
If the marginal propensity to consume (MPC) increases... A. The MPS increases B. The multiplier decreases...

If the marginal propensity to consume (MPC) increases... A. The MPS increases B. The multiplier decreases C. MPC +MPS is less than 1 D. THe multiplier increases
. The marginal propensity to consume in a city is 0.7 and the marginal propensity to...

. The marginal propensity to consume in a city is 0.7 and the marginal propensity to import is 0.1. A team proposes a new stadium construction project that will generate $6 million in spending. A. Using multiplier effects, how much will the project generate in total? B. Why is it likely that the actual increase in new income will be much smaller?

Suppose a city spends $100 million on a project. The marginal propensity to consume is 0.5...

Suppose a city spends $100 million on a project. The marginal propensity to consume is 0.5 and the propensity to import is 0.4. What is the total economic impact of the project? Group of answer choices $1 billion $10 million $100 million $111 million