Potential output = $450 Billion; real GDP = $400 Billion; MPC = 0.5, marginal propensity to import = 0 and the income tax rate is 10%. Assuming no change in the aggregate price level, government spending on goods and services would need to change by $. %3D Billion to move this economy to full employment. A Round your answer to the nearest billion. Do not include the $ sign. A commercial bank is currently holding $50,000 in reserves, has no excess reserves and has a desired reserve ratio of 0.2. It must be holding deposits equal to $_ Do not include the $, any spaces or commas in your answer

Potential output = $450 Billion; real GDP = $400 Billion; MPC = 0.5, marginal propensity to import = 0 and the income tax rate is 10%. Assuming no change in the aggregate price level, government spending on goods and services would need to change by $. %3D Billion to move this economy to full employment. A Round your answer to the nearest billion. Do not include the $ sign. A commercial bank is currently holding $50,000 in reserves, has no excess reserves and has a desired reserve ratio of 0.2. It must be holding deposits equal to $_ Do not include the $, any spaces or commas in your answer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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