The US government sends $1,550,000,000 in tax rebatestimulus checks to American citizens. On average,Americans spend 88% of their income and save the rest.Answer the following questionsWhat is the multiplier based upon American spendingbehavior? 113.6(round to the seconddecimal place if necessary)What is the total impact of this injection?1761necessary)(round to the nearest dollar if

answer is given belowExplanation:To calculate the multiplier based on American spending behavior, we…

Answered: The US government sends $1,550,000,000…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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can you tell me which questions i've gotten wrong? This is a practice quiz that doesnt tell you the correct answers at the end. thanks 1- An increase in business investment spending has the same effect on the level of ad as an increase in the same amount of government spending. -true 2- If the government increased taxes by $10 at the same time it increased spending by $10 there would be no effect on the level of AD. 3- If social security payments to retirees increase, AD will increase and raise Y*. -true 4- Tax cuts in the classical range of the AS will stimulate output and unemployment -false 5- Increasing welfare payments by borrowing money to do so will increase AD- true 6- if the mpc increases, the multiplier decreases- false 7- if the mps increases the multiplier decreases -true 8- part of the cost of growing government budget deficits is and “opportunity cost” of what else could have been done with the money, particularly if the borrowing is used to increase consumption spending.…
1. An article in the Wall Street Journal criticized the concept that an increase in government spending can generate an increase in GDP equal to a multiple of the amount spent: "In what passes for debate in Washington, the prevailing notion seems to be 'putting money in people's pockets.' This might be called single-entry Keynesianism, since the money the government puts in pockets arrives by immaculate conception. Something like this was indeed taught in Econ 101 in the 1950s; the government 'injected' money, remember, to be 'multiplied' a number of times depending on 'the marginal propensity to consume.' Consumption good, savings bad. "By the 1960s, the monetarist school of economics had revived, and asked, where does the government get this money it 'injects.' If it's created by the Fed, you're talking about monetary policy, not fiscal policy. If it…
also draw the calculation on paper so that I can follow the calculation. Aggregate demand in Small Country X is AE (Y) = C + I + G + X-IM! And the table below shows how demand depends on national income. Relationships describing final use expenditure The goods market Consumption Disposable income Tax H Capital expenditure Public expenditure Export Import Connection C = 50+0.7* Ya Y4=Y-T T= 0.3*Y* I= 50-3.25* | G = 450 X = 100 IM = 0.14 Y The money market Money demand Money supply Connection Md -0,2* Y-i M=196 4 (a Your task is to calculate the equilibrium National Income (Y) and the interest rate (i)based on the figures above:>> Y == and 4 (b Describe how large the state's tax revenues are and calculate the state budget balance (Sb), further you should calculate country's current account (NX): T= Sb NX =
8
13. Suppose that two countries differ on in the size of their MPC, where the MPC is high in country A and low in country B. Draw IS/LM and AD/AS curves for each country. In which country will monetary policy be most effective at changing income? Fiscal policy?
50 ts 00:30:41 Print During the Great Depression, Keynes advocated the use of Multiple Choice O monetary; aggregate demand for fiscal; aggregate demand for monetary, aggregate supply of fiscal; aggregate supply of policy to increase the goods and services.
practice quizlet that I cant get
President Biden is proposing an increase in the corporate income tax rate from 21% to 28%. Although the corporate tax rate will be higher than it is currently, it is still lower than the corporate tax rate of 35% that had been in place since President Clinton. How will this tax increase affect aggregate expenditures, equilibrium GDP and employment? Part of the reason for this proposal is to offset the increased spending from the last three stimulus packages/checks which increased Federal government's debt. Do you agree with the proposed increase in corporate tax rates? Why or why not? What are some of the costs and benefits of the proposed tax changes? Is this the right time to increase taxes? Why or why not?
Assume potential GDP is 3,500 and actual GDP is 3,000. If the consumption function is C=100+0.5Yd , how much does government expenditure need to rise by to close the output gap? (Please input the round number without any Euro symbol)
if the multplier in an economy is 2, a $10 billion increase in net exports will
The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.4 of national income, the MPC out of after-tax income is 0.9, investment is 58, government spending is 60, exports are 40, and imports are 0.1 of after-tax income. Alt Text: This chart contains the following columns: National Income, After-tax income, Consumption, I+G+X, Minus Imports, and Aggregate Expenditures. The National Income Column contains the following values for each of the following rows: 100, 200, 300, 400, 500, and 600. The only other value provided is the consumption, 104, for national income, 100. What does consumption equal when income equals 600? Group of answer choices a. 324 b. 374 c. 540 d. 104
In a recession spending is Krugman (who is a Keynesian) the government should taxes and spending. less than, cut, increase more than, cut, cut more than, cut, increase 58 less than, increase, cut than the productive capacity of the economy. According to Paul government

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