1a. Why are savings and investment so important for economic growth? b. How do savings and investment affect present and future consumption? Explain. 2. How does the Production Possibly Curve behavior when the economy is growing and wh...
What is the effect on real GDP of a $100 billion change in planned investment if the MPC is 0.65 Discuss how GDP can impact your personal life, your work, or school life. When housing prices fall, this would most likely affect which component of GDP?
357K Learn the exchange rate definition and understand how exchange rates affect international trade. Compare both the strong and weak exchange rate effects. Related to this QuestionHow do monetary and fiscal policies affect the composition of GDP (primarily ...
Having delved into futures trading in the past, my intrigue in financial, economic, and political affairs eventually led me to a striking realization: the current debt-based fiat system is fundamentally flawed. This revelation prompted me to explore alternative avenues, including...Read More ...
Explain what happens to consumption, investment, and the interest rate when the government increases tax rates (but keeps government expenditures constant). How does the size of the MPC affect the out Explain why a tax expenditure can be thought of as off-budget. How, precise...
Does your industry generate enough revenue to make it worth investing in? What is the market size, and what market share can you count on? How many competitors are there in your niche and how much money does it require to entice their customers?
Tax cuts will likely affect aggregate demand and aggregate supply. Does it matter which is affected more? Use the AD-AS framework to explain. Explain how an investment tax break could affect investment, aggregate demand, and income. Explain how a decline in taxes that affects the labor market...
Check your work by expressing the consumption, investment, and net export schedules in tabular form and determining the equilibrium GDP. b What will happen to equilibrium Y if Ig changes to 10? What does this tell you about the size of the multiplier? (a) the equilibrium level of income ...
How do you calculate the level of GDP, based on the MPC & MPS? How does marginal propensity to consume affect aggregate expenditure and real GDP? Define Real GDP. If the real GDP is $52000 and the nominal GDP is $65000, calculate the price index taking base = 100. ...
The marginal propensity to consume is the proportion of added income that is spentversus that which is saved. To calculate the MPC, you need to know the change in income as well as the change in spending (or consumption). Divide the change in consumption by the change in income to find ...