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
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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
Transcribed Image Text: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
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