The table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. Real GDP, Y (billions of 2012 dollars) Consumption expenditure, C (billions of 2012 dollars) Investment, I (billions of 2012 dollars) Government expenditure, G (billions of 2012 dollars) 15 6 5 5 20 10 5 5 25 14 5 5 30 18 5 5 35 22 5 5 The marginal propensity to consume in Syldavia is equal to A. 0.40. B. 5.00. C. 0.80. D. 0.75. E. 0.20.

The table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. Real GDP, Y (billions of 2012 dollars) Consumption expenditure, C (billions of 2012 dollars) Investment, I (billions of 2012 dollars) Government expenditure, G (billions of 2012 dollars) 15 6 5 5 20 10 5 5 25 14 5 5 30 18 5 5 35 22 5 5 The marginal propensity to consume in Syldavia is equal to A. 0.40. B. 5.00. C. 0.80. D. 0.75. E. 0.20.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 5E

See similar textbooks

Related questions

Q: If the government is running a budget surplus, net export is 0. Then: i) private saving is greater…

A: Aggregate expenditure is the sum of consumption, investment, government spending and net exports.

Q: The Government of Bangladesh plans to administer 280 million doses of COVID-19 vaccine in the coming…

A: Answer-

Q: E (aggregrate equilbruim)= 3,333.33 Calculate the marginal propensity to save (MPS)

A: Aggregate expenditure model states the relationship between aggregate expenditure and real GDP. At…

Q: In early 2000, China was the fastest emerging economy in Asia. However, in recent years, China has…

A: Given information: C = 250 + 0.6(Y-T) --------> Consumption function T=15 + 0.05Y…

Q: The rate of output and planned expenditures for the economy of Timbuktu are shown in the following…

A: a) When the real GDP is less than the planned aggregate expenditure, it would lead to a fall in…

Q: Assume that the economy is now governed by a government and begins trading with other economies. The…

A: Equilibrium in the market occurs where income is equal to aggregate expenditure.

Q: Suppose the interest on the debt was $700 billion. If interest is paid domestically, 90% will be…

A: Given: The total debt of the country is given as $700 billion 100% interest is paid domestically…

Q: The following table shows the Real GDP and Consumption in Country A and Country B over two years:…

A: Given: Real GDP Year 1 Year 2 Country A $100 Billion $120 billion Country B $100 billion…

Q: Use the information below to answer the following questions. Suppose that in China, investment is…

A: Given that; Investment = ¥190 billion Saving =¥170 billion Government expenditure =¥195 billion…

Q: NBER stands for ____________ and is responsible for ________________. a National Bureau of…

A: NBER stands for National Bureau of Economic Research is a private organization that aims to…

Q: The table below shows data for three fictitious countries. a. Compute the current MPC for each…

A: MPC is the Marginal propensity to consume it shows the change in consumption in relation to the…

Q: If the government expenditures decrease by 100 million Euro and the aggregate demand decreases by…

A: MPC is the marginal propensity to consume. MPC shows a particular percentage of disposable income…

Q: Consider the following table showing national income in billions of dollars. Assume that the…

A: The marginal propensity to import (MPI) is a measure of how much an additional unit of income is…

Q: The following values represent country A C=$160, S=$40, T=$0, Y=$200 and I=$30, T=0 and G=0 The…

A: C=$160 S=$40 T=$0 Y=$200 I=$30, T=0 G=0 MPC =…

Q: In the country of Borealis, the minimum amount of consumption spending that will occur is $300 -…

A: C=300+0.75Y I=100 G=100 X=M=T=0

Q: U.S. net export spending falls when? the inflation rate is lower in the United States relative…

A: Net export is equal to export minus import. Net export is a part of GDP.GDP is the sum of…

Q: The aggregate demand function: yad =C+I+G₁ = 500+ 0.75Y is plotted on the graph to the right. The…

A: MPC refers the marginal propensity to consume, which means how much part of income used in…

Q: Write the Total Spend equivalence in an open and governmental economy. (Variables will be written…

A: C+I+G+x-m C=consumption expenditure I=investment expenditure

Q: The following information is provided about an open economy with a government. Use the information…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Troll Island is a small island nation that recently experienced an autonomous change in aggregate…

A: Marginal Propensity to Consume (MPC): It refers to the proportion of income that is spent on…

Q: creased by 4 billion, and the marginal propensity to consume on Troll Island is equal to 0.7. What…

Q: The data in columns 1 and 2 in the table below are for a private closed economy. (1) (2) (3) (4) (5)…

A: Note: Since you posted a question with multiple subparts, we will solve the first three subparts for…

Q: Assume that a nation's marginal propensity to consume (MPC) is 0.75. A highly productive,…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: (Advanced analysis) The equations give information for a private open economy. The letters Y, C, Ig…

A: The concept of the multiplier demonstrates how initial spending can lead to larger increases in…

Q: When a U.S. consumer buys Canadian maple syrup at the grocery store, this purchase is: A) an import…

A: Answer: If а U.S. соnsumer buys mарle syruр mаde in Саnаdа, it is inсluded оn Саnаdа's…

Q: Due to an increase in consumer wealth, there is a $40 billion autonomous increase in consumer…

A: Multiplier refers to the economic factor that amplifies increase or changed can lead to increase or…

Q: A reduction in the marginal propensity to import will cause A) the multiplier to increase and a…

A: A reduction in the marginal propensity to import will cause B) the multiplier to increase and a…

Concept explainers

Imports and Tariff Analysis

Tariff - Tax on imports imposed by the customs authority coming from a country & exports leaving a country borne by the end consumer.

Question

100%

The table contains information about the nation of Syldavia. There are no income taxes or imports in this nation.

Real GDP, Y (billions of 2012 dollars)	Consumption expenditure, C (billions of 2012 dollars)	Investment, I (billions of 2012 dollars)	Government expenditure, G (billions of 2012 dollars)
15	6	5	5
20	10	5	5
25	14	5	5
30	18	5	5
35	22	5	5

The marginal propensity to consume in Syldavia is equal to

0.40.

5.00.

0.80.

0.75.

0.20.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A reduction in the marginal propensity to import will cause A) the multiplier to increase and a given change in government spending (G) to have a larger effect on domestic output. B) the multiplier to increase and a given change in government spending (G) to have a smaller effect on domestic output. C) the multiplier to decrease and a given change in government spending (G) to have a larger effect on domestic output. D) the multiplier to decrease and a given change in government spending (G) to have a smaller effect on domestic output.
An Economy is composed of a Producer of Apples, a Producer of Bananas, a Grocery Store, Consumers, and the Government. Producers of Apples and producers of bananas sell some of their output to the grocery store, and some directly to consumers. Producers of apples and bananas also have some loans, which they owe to consumers, and pay some interest on them. The government collects taxes and spends them on miliary personnel, which appear as wages. The following tables contain the relevant data for all of them to calculate GDP, except for consumers: Apples Producers Total Revenues Wages Interest on Loan Taxes 100 10 10 Bananas Producers Total Revenues Wages Interest on Loan Taxes 200 15 20 Grocery Store Cost of Apples Cost of Bananas Wages Taxes Revevenues 50 50 40 10 200 Government Taxes 50 |Wages 50 Calculate total profits (after taxes)
An Economy is composed of a Producer of Apples, a Producer of Bananas, a Grocery Store, Consumers, and the Government. Producers of Apples and producers of bananas sell some of their output to the grocery store, and some directly to consumers. Producers of apples and bananas also have some loans, which they owe to consumers, and pay some interest on them. The government collects taxes and spends them on miliary personnel, which appear as wages. The following tables contain the relevant data for all of them to calculate GDP, except for consumers: Apples Producers Total Revenues Wages Interest on Loan Taxes 100 10 5 10 Bananas Producers Total Revenues Wages Interest on Loan Taxes 200 15 8 20 Grocery Store Cost of Apples Cost of Bananas Wages Таxes Revevenues 50 50 40 10 200 Government Taxes 50 Wages 50 Calculate GDP in the economy (you can use any approach you want).
The trade feedback effect shows that A 50 million dollar increase in U.S. exports results in a 30 million dollar decrease in German imports. A 100 million dollar increase in U.S. imports results in a 50 million dollar decrease in French imports. A 100 million dollar increase in U.S. imports results in a 70 million dollar increase in U.S. exports. A 1 billion dollar increase in U.S. GDP increases U.S. net exports by 100 million dollars.
Using the ZZ/Y and NX graphs, illustrate graphically and explain what effect an increase in taxes will have on output, exports, imports, and net exports. Clearly label all curves as well as the initial and final equilibria. (100 words max)
Consider the following hypothetical data for the U.S. economy in 2020 (in trillions of dollars), and assume that there are no statistical discrepancies, zero net incomes earned abroad, and zero taxes on production and imports of net subsidies. Category Category Value $2.6 Exports 0.8 Net transfers and interest earnings 0.8 Nonincome expense items 0.8 Imports 8.1 Corporate taxes 1.2 Social security contributions 11.7 Government spending Value $1.3 Corporate profits before taxes deducted Proprietorial income 1.9 Rent 1.6 Interest 1.7 Wages Depreciation Consumption 0.6 2.2 1.7 a. Calculate the gross domestic income. S trillion. (Enter your response rounded to one decimal place.) Calculate GDP. S trillion. (Enter your response rounded to one decimal place.)
3. Why the aggregate demand curve slopes downward The following graph shows the aggregate demand (AD) curve in a hypothetical economy. At point A, the price level is 120, and the quantity of output demanded is $500 billion. Moving up along the aggregate demand curve from point A to point B, the price level rises to 140, and the quantity of output demanded falls to $300 billion. 170 180 150 B 140 130 A 120 110 AD 100 90 100 200 300 400 500 600 700 800 REAL GDP (Billions of dollars) PRICE LEVEL
Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of GDP. If necessary, round your answers to the nearest hundredth. GDP Exports Imports Exports - Imports Year (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Percentage of GDP) 1983 3,535.0 277.0 328.6 -51.6 -1.46 1984 3,931.0 302.4 405.1 -102.7 -2.61 1985 4,218.0 302.0 417.2 -115.2 -2.73 1986 4,460.0 320.3 452.9 -132.6 -2.97 1987 4,736.0 363.8 508.7 -144.9 -3.06 Source: "Income, Expenditures, Poverty, & Wealth: Gross Domestic Product (GDP)," United States Census Bureau, United States Department of Commerce, last modified September 2011, accessed June 10, 2013, https://www.census.gov/library/publications/2011/compendia/statab/131ed/income-expenditures-poverty-wealth.html. Between 1984 and 1985, the in dollar terms and as a percentage of GDP.
Explain how the removal of online purchase taxes on ICT devices may effect a country's national income.
Solve the attachment
Consider an economy (with no international trade) in which the price level is constant where C = 500 + .8DI, I = 600, G = 500, and T = 500. What is the equilibrium level of GDP?
You have the following annual data for the New Zealand economy ($bn): GDP (Y) = 190 Gross National Disposable Income (Yd) = 183 Net exports of goods and services (NX) = 5 Private Consumption (C) = 112 Government consumption (G) = 38 Based on this data, complete the following paragraph (enter numbers only). Investment (I) is equal to $____bn. The current account (surplus or deficit?) is equal to $_____bn. The capital account part of the balance of payments (which for the purposes of this question includes both capital and financial accounts) therefore shows a ____ of $_____bn. National savings is equal to $______bn.