If the marginal propensity to import decreases:the demand (ZZ) line to become steeper and a given change in governmentspending to have a larger effect on outputthe demand (ZZ) line to become steeper and a given change governmentspending to have no effect on outputthe demand (ZZ) line to become steeper and a given change in governmentspending to have a smaller effect on outputO the demand (ZZ) line to become flatter and a given change in governmentspending to have a larger effect on outputthe demand (ZZ) line to become flatter and a given change in governmentspending to have a smaller effect on output

The slope of the imports line is also referred to as the marginal propensity to import and it is…

Answered: If the marginal propensity to import…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

At this point, what is the amount of reduction in military spending from the point identified in question 1
Given an MPC of .8 and an increase in government spending of 5 The aggregate supply curve will shift to the right by 20 The aggregate supply curve will shift to the left by 20 The aggregate supply curve will shift to the right by 5 The aggregate supply curve will shift to the left by 5 None of the above
Fiscal policy refers to changes in Group of answer choices federal taxes and purchases that are intended to fund the war on terrorism. the money supply and interest rates that are intended to achieve macroeconomic policy objectives. federal taxes and purchases that are intended to achieve macroeconomic policy objectives. state and local taxes and purchases that are intended to achieve macroeconomic policy objectives.
Define the tax multiplier and give the algebraic expression.
In an effort to increase output in the short run due to the poor economy, government officials have decided to cut taxes. They are considering two possible temporary tax cuts of equal size in terms of lost revenue. The first would reduce the taxes on people with incomes above $100,000 per year. The second would cut taxes on people with incomes below $60,000 for one year. Which change would have a greater impact on aggregate spending (i.e shift the aggregate demand curve further to the right)? Why?
An increase in government spending will cause a(n): Multiple Choice decrease in aggregate supply. increase in aggregate supply. increase in aggregate demand. decrease in aggregate demand.
CANBERRA, AUSTRALIA - Australia's prime minister achieved an important political victory on Thursday when the Senate passed personal income tax cuts worth 144 billion Australian dollars ($106 billion) over a decade. The tax cuts for most of Australia's workforce were a centerpiece of Prime Minister Malcolm Turnbull's annual budget plans revealed in May. That budget is expected to be the last before Turnbull's conservative coalition seeks another three-year term at elections due by early next year. The center-left opposition Labor Party supported the proposed initial tax relief for low- and middle-income earners beginning next month. But it opposed a third and a final stage of the plan that reduces taxes of those with incomes from AU$120,000 to AU$200,000 beginning in mid-2024. Turnbull on Wednesday refused to split the legislation so that the Senate could reduce taxes for those on lower incomes but not for higher-income earners. The Senate had to pass or reject the changes in their…
Fiscal stance refers to
Consider two economies, A and B. Economy A has a marginal propensity to consume of 0.9, a net tax rate of 0.2 and a marginal propensity to import of 0.2. Economy B has a marginal propensity to consume of 0.7, a net tax rate of 0.2 and a marginal propensity to import of 0.2. Suppose there is an increase in autonomous investment of $5 billion in each of these economies. Which of the following statements is true? Select one: O A. The AD curve shifts farther to the right in Economy A than Economy B. O B. The AD curve shifts to the left the same amount in both economies. O C. The simple multiplier is larger in Economy A. O D. The AD curve shifts to the right the same amount in both economies. O E. The AD curve shifts farther to the left in Economy B than Economy A.
Country D experiences a recession due to a decrease in consumer confidence. There are two economists, Andrew and Betty. Betty suggests the government to do nothing. Andrew suggests the government to implement fiscal policies to revive the economy as soon as possible. If the government adopts Betty’s policy, draw an AD-AS graph to show what happens to the economy in short run and then long run after the decrease in consumer confidence. Suppose the government adopts Andrew’s policy. (i) Will the government increase or decrease spending? (ii) The government cuts the income tax rate. After cutting the income tax rate, the total income tax revenue collected increases. Explain why. (iii) Will Andrew’s policy be more effective if MPC is smaller? Give one advantage of Betty’s policy over Andrew’s policy.
When incomes rise, imports tend to a) behave in an unpredictable manner b) fall c) rise d) stay the same
Which of the following best describes a negative impact of Brexit on the UK? The Pound sterling became the dominant currency in global trade. The UK saw an increase in educational exchange programs with EU countries. The UK experienced an immediate boost in global trade partnerships outside the EU. Products from EU member nations flooded the UK market, impacting domestic producers.

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS