What is the eventual effect on real GDP if the government increases its purchases of goods and services by $60,000? Assume the marginal propensity to consume (MPC) is 0.75. $_____________________

What is the eventual effect on real GDP if the government, instead of changing its spending, increases transfers by $60,000? Assume the MPC has not changed. $_____________________

An increase in government transfers or taxes, as opposed to an increase in government purchases of goods and services, will result in
a. an identical eventual effect on real GDP.
b. no change to real GDP.
c. a smaller eventual effect on real GDP.
d. a larger eventual effect on real GDP.

Answers

Answer 1

Answer:

$240,000
$180,000
c. a smaller eventual effect on real GDP.

Explanation:

The eventual effect on real GDP of an increase in government purchases is the initial increase times the multiplier. The multiplier is

multiplier = 1 / (1−MPC)

where MPC is the marginal propensity to consume. The MPC is the fraction of an additional dollar consumers spend and 0.75 in this question. The eventual effect of the $60,000 increase is

$60000.0 × multiplier = $60000.0 × 1 / (1 − 0.75) = $60000.0 × 4 = $240000

The eventual effect on real GDP if the government increases transfers by $60,000 can be found by multiplying the transfer increase by the MPC and the multiplier.

$60000.0 × multiplier × MPC = $60000.0 × 4 × 0.75 = $180000

This is the same formula as in the case of government spending except for the additional multiplier, the MPC. When the government increases transfer payments, they effectively pay consumers directly, who only spend 75% (their MPC) of the initial $60,000 transfer.

Note that if MPC is equal to 0.5, then the multiplier is equal to 2. So the eventual effect is

$60000.0 × multiplier × MPC = $60000.0 × 2 × MPC = $60000.0 × 2 × 0.5 = $60000.0

In this special case, the eventual impact of a transfer is equal to the size of the transfer.

Unless the MPC is equal to 1, the eventual impact on real GDP for a change in government transfers will be less than the eventual impact for a change in government purchases.


Related Questions

6. Which of the following people typically held the most power in the Roman Republic?
A. Wealthy men
B. Wealthy women
C. Poor men
D. Poor women

Answers

Answer

A. Wealthy men

When particles of matter are in direct contact, conduction of thermal energy occurs in which states of matter?

Answers

Conduction is the direct transfer of heat energy between substance particles without the particles migrating to a new position. It often happens in solids.

What is conduction?

Conduction is the movement of heat from a hotter end of an object to a cooler end. The ability of a thing to conduct heat, denoted by the symbol k, is known as thermal conductivity. The body transmits heat, which causes heat to move through and inside it. In contrast, heat is routinely transported between bodies that are geographically distant when it occurs by thermal radiation. A combination of phonon propagation, diffusion, and collisions, as well as vibrations and collisions of molecules and free electrons, mediate conduction in solids. The concept of heat transfer by electromagnetic radiation in this case differs from that of heat conduction by microscopic diffusion and collisions of material particles and phonons since photons in this situation do not clash with one another.

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Match the given scenarios to the respective participants in the forex market.

1.The currency rate of exchange of the nation was fluctuating
too much. An agency protected the value of the national
currency by overseeing forex transactions.
This agency is the …

2.This agency conducts commercial forex transactions.
These are handled by large commercial banks.
This agency is the…

3.This is a wholesale dealer of foreign currencies
who supplies currencies when other agencies
are short of them. This is the…

4.This includes foreign trade in goods and services using
commercial banks for forex exchanges. This is the…

foreign exchange broker---->

retail customer---->

central bank---->

foreign exchange dealer---->

Answers

Based on their roles, the descriptions of participants in the forex market are:

Foreign exchange broker - This agency conducts commercial forex transactions. These are handled by large commercial banks.

Retail Customer - This includes foreign trade in goods and services using commercial banks for forex exchanges.

Central Bank - The currency rate of exchange of the nation was fluctuating too much. An agency protected the value of the national currency by overseeing forex transactions.

Foreign exchange dealer - This is a wholesale dealer of foreign currencies who supplies currencies when other agencies are short of them.

What are the roles of forex market participants?

Foreign exchange brokers facilitate forex transactions which is why commercial banks usually have this role. Retail customers are the end users who need forex to trade foreign goods and services.

The Central Bank ensures that the national currency is protected by tracking forex transactions while foreign exchange dealers hold foreign currencies and supply them to others who need them.

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Answer:

Explanation: edmentum/plato

Do you believe charismatic authority has played a role in our last two presidential elections?

Answers

Answer:

Yes

Explanation:

Going to assume your'e talking about US elections. I will try to remain unbiased.

Presidents Trump and Biden have very night and day styles of charisma, which are both very interesting to analyze.

Trump's charisma was the type to get people riled up, while using terms that any person can understand. He was never afraid to speak his mind and advertised himself as someone whos agaisnt the establishment. Of course, we saw how this caused a bunch of chaos throughout the country in many different fields. It is with the background of this chaos that we can analyze Biden's charismatic authority. He presented himself as a regular man; "Uncle Joe" if you will, unlike his celebrity businessman predecessor. With this presented a sort of "return to normalcy" from the chaos of Trump's presidency. He doesn't present himself as the type to be very outlandish.

Hope this helps!

yes coz the louder and forward they are the more likely to become president

This was confrontation Between the soviet union and the united states over nucler missiles the soviets had allegedly deployed to cuba

Answers

The Cuban Missile Crisis

Which of the following statements is true about water access in the Middle East?
A. Access to coastal waters is not important to people.
B. Most countries depend on outside resources for water.
C. Water is available in large supplies in all countries.
D. All countries have sources of renewable freshwater

Answers

Answer:

B   hope this helps you

Explanation:

Answer:

B

Explanation:

Worker productivity is one of the most important factors that help determine the performance of an economy.

Which definition best describes productivity?
a. production per worker
b. percentage change in output
c. total output in one year
d. total number of hours worked
e. capital per worker

Answers

Answer:

a. production per worker

Explanation:

Productivity can be defined as production per worker, or production per hour worked. Sometimes, when the number of workers is not available, total population is used instead of the number of workers. Therefore, productivity can also be defined as per capita GDP.

Productivity can be defined as production per worker, or production per hour worked. In other words, total production relative to the number of workers or relative to total population. Productivity can also be defined as GDP per capita.

The correct option for the definition that best describes productivity is A. production per worker.

What definition best describes productivity?

Productiveness is typically defined as a ratio between the output extent and the extent of inputs. In other words, it measures how efficiently manufacturing inputs, which include labor and capital, are being utilized in an economic system to supply a given degree of output.

Conclusion: Productivity increases have enabled the U.S. business sector to produce nine times more goods and services since 1947 with a relatively small increase in hours worked. With the growth in productivity, an economy is able to produce—and consume—increasingly more goods and services for the same amount of work.

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Which idea from John Locke’s Second Treatise on Government can be seen in the language of the Declaration of Independence?

A.
The colonies stand united against Great Britain.
B.
All men are created equal in rights.
C.
When government doesn’t work, the people should change it.
D.
Citizens should petition their king with grievances.

Answers

Locke wrote his Second Treatise on Government in 1689, in which he wrote that all individuals are equal in the sense that they are born with natural rights. Thus, the correct option is B). All men are created equal in rights.

What was the purpose of the Second Treatise on government by John Locke?

Second Treatise on government was written by the John Locke in 1689, during the time of England's Glorious Revolution. In the Second Treatise on government, he mentioned that all men are created equal in rights.

He stated that all individuals are equal in the sense that they are born with the natural rights, that are God-given and can never be taken or even given away. These fundamental rights includes "life, liberty, and property."

He believed that individuals have both a right and a duty to preserve their own lives, they should be free to make choices about how to conduct their own lives without any interference.

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Answer:

C. All men are created equal in rights.

Explanation:

Identify the impact on either the supply or demand of loanable funds following the events listed below.

a. If economic conditions deteriorate, prompting households to save a larger portion of their income, then __________ loanable funds will __________.
b. In an effort to balance the budget, the government increases taxes paid by businesses. As a result, the __________ loanable funds will __________.
c. If economic conditions improve, increasing the demand for goods and services, then the __________ loanable funds will __________.
d. Innovations in robotics technology vastly improves productivity within manufacturing firms. As a result, the __________ loanable funds will __________.

WORD BANK
supply of
demand for
increase
decrease

Answers

Answer:

a. If economic conditions deteriorate, prompting households to save a larger portion of their income, then supply of loanable funds will increase.

b. In an effort to balance the budget, the government increases taxes paid by businesses. As a result, the demand for loanable funds will decrease.

c. If economic conditions improve, increasing the demand for goods and services, then the demand for loanable funds will increase.

d. Innovations in robotics technology vastly improves productivity within manufacturing firms. As a result, the demand for loanable funds will increase.

Explanation:

Any changes in household saving patterns will shift the supply curve for loanable funds. When households save more due to deteriorating economic conditions, the total supply of saving increases, shifting the loanable funds supply curve to the right.

An increase in business taxes will reduce the profitability of new investment projects, so the demand for loanable funds will decrease.

An improvement in economic conditions, which increases the demand for goods and services, will cause the demand for loanable funds curve to shift to the right, as businesses find it more profitable to invest in production equipment.

Advancements in robotics technology, leading to increased productivity, will increase the demand for loanable funds, as firms will have an incentive to increase their investment in equipment and machinery.

Which statement would an American Federalist be most likely to make?

1. A popular king or queen would help unite the northern and southern states.

2. A national government isn’t needed at all because the states can govern themselves.

3. A strong national government would make it hard for state governments to handle local problems.

4. A strong national government would protect the rights of individual citizens.

Answers

Answer:

4. A strong national government would protect the rights of individual citizens.

Explanation:

Federalists = favors strong federal government

Anti-Federalists = opposes strong federal government

What kind of school is best for teenagers ?

Answers

vocational, charter, or other less traditional public school

Which of the following is the best way to avoid plagiarism? Select one: a. Copy the good bits from different resources. b. Reuse an answer your friend gave you, but change the words. c. Use quotations and give credit when referring to resources you used. d. Complete each assignment that does not ask for group work as a group.

Answers

Answer:

A

Explanation:

If you copy good parts from different resources it still won't look the same as the orginal source your taking from, because your taking from multple sources.

I need help is economic btw

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Answer:

corporate income taxes

Explanation:

The first step in solving an ethical dilemma is to

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Answer:

Weight the impact of each alternative on various skateholders.

Answer

Explanation:

gather the information that you have then identify the problem then explore the indications you have (if this didnt help im sorry)

What are the three things Ms. Gorgens says parents should do when considering whether to allow their child to play football?

Answers

The context clues show that the three things the three things that Ms. Gorgens says parents should do when considering whether to allow their child to play football include study up, suit up, ad speak up.

What are context clues?

It should be noted that context clues are the hints that are given in a literary work by the author.

In this case, the three things that Ms. Gorgens says parents should do when considering whether to allow their child to play football include study up, suit up, ad speak up.

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Because of the divorce, Coty found himself separating from friends and other social relationships
that he once shared with his former spouse. This station of divorce is identified by family researcher
Paul Bohannon as a __________ divorce

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the answer is emotional:)

Which option best describes your ability to stay organized?

A.
I am not organized. I need more help keeping track of my assignments.

B.
I am usually organized. I will continue to monitor my pacing and assignments.

C.
I am always organized. I complete assignments on time or ahead of schedule.

Answers

Answer:

B.

I am usually organized. I will continue to monitor my pacing and assignments.

Explanation:

So , I can keep on improving to be organized

The best option that describes the ability to stay organized is I am usually organized. I will continue to monitor my pacing and assignments. The correct option is b.

What are assignments?

Assignments are a set of tasks assigned to students by their teachers to be completed outside the classroom. Common homework assignments may include required reading, a writing or typing project, mathematical exercises to be completed, information to be reviewed before a test, or other skills to be practised.

The effects of assignments are debated. Generally speaking, homework does not improve academic performance among young children. Homework may improve academic skills among older students, especially lower-achieving students. However, homework also creates stress for students and parents and reduces the amount of time that students can spend on other activities. The basic objectives of assigning homework to students often align with schooling in general.

Younger students who spend more time on homework generally have slightly worse, or the same academic performance, as those who spend less time on homework.

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Examine the differences between the person-job and person-organisation theory, using Holland’s Typology of Personality and congruent occupations as an example under Social

Answers

The differences between the person-job and person-organization theory, using Holland’s Typology of Personality and congruent occupations are:

A person-job fit means that an individual's skills, knowledge, and abilities are matched to the characteristics and requirements of a particular job.  Individuals with person-job fit enjoy working with people and communicate persuasively, warmly, and tactfully.Whereas, a person-organization fit ensures that an individual's skills, knowledge, and abilities match the organization's culture.A person with a person-organization fit is organized, loyal, and hard-working. The persons with organization fit enjoy working in the organization more than the individuals working within the organization.

What is Holland's Typology of Personality?

Holland identified the following six personality types within suitable working settings:

Realistic (R) Investigative (I) Artistic (A) Social (S) Enterprising (E) Conventional (C).

Thus, using these personality types, Holland implies that a career-seeker can be matched to an appropriate job depending on their personality and interests.

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Why do demographic factors matter when it comes to public opinion? What kind of differences in opinion do you find and why?

Answers

Answer:

Education is a large factor in the differences in public opinion.

Explanation:

Because education has a large impact on people's knowledge, understanding, and even how they may interpret information.

Demographic factors such as age, gender, race, ethnicity, education level, and socioeconomic status can shape an individual's values, beliefs, experiences, and perspectives, which can influence how they perceive and respond to various issues and policies.

What kind of differences in opinion do you find and why?

Demographic factors can lead to significant differences in opinion on a variety of issues. For example, research has shown that younger people tend to be more supportive of progressive social policies than older people.

Women and men often hold different views on issues such as reproductive rights and healthcare. People of color may have different perspectives on issues such as criminal justice reform and immigration than white people.

Education level and socioeconomic status can also have an impact on opinion, with people with higher levels of education and socioeconomic status having different opinions on economic policies and social programs than those with lower levels.

These differences in opinion can be attributed to a variety of factors, including life experiences, cultural backgrounds, and exposure to different information sources.

Additionally, these differences can be reinforced and amplified by social and political polarization, which can make it difficult for people to bridge the gap between their views and those of others.

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Question was an error?

Answers

oh!!!!what's the question you ask

whats the definition of isthmus

Answers

Answer:

a narrow strip of land with sea on either side, forming a link between two larger areas of land.

Anatomy: a narrow organ, passage, or piece of tissue connecting two larger parts.

5. Look at the source and answer the question

This Invention most likely allowed the ancient Egyptians to

A. spread Egyptian culture across long-distance trade networks.

B. create a permanent record of Egyptian history and literature,

G. "use maps to travel throughout Egyptian territory.

D. increase the number of schools available for the Egyptian people.

Answers

B. Create a permanent record of Egyptian history and literature

going to give brainliest Write a one-page summary of the checks and balances of the U.S. government. Use this chart and begin with the executive branch. Note the duties of each branch and how it would be impossible for each branch of government to have too much power.

Answers

Answer:

Explanation:

The Checks and Balances system provides each branch of government with individual powers to check the other branches and prevent any one branch from becoming too powerful. Checks and balances are principles of government under which separate branches are empowered to prevent actions by other branches and are induced to share power. Checks and balances are applied primarily in constitutional governments. The best example of checks and balances is that the president can veto any bill passed by Congress, but a two-thirds vote in Congress can override the veto. Other examples include: The House of Representatives has the sole power of impeachment, but the Senate has all power to try any impeachment.

how lack of responsible citizenship can lead to further cases of human rights violation within a community

Answers

The main way in which a lack of responsible citizenship can lead to further cases of human rights violation is a lack of accountability.

What is Responsible Citizenship?

This refers to the activity of citizens where they engage in acts or actions that helps their community and the government to make society better for everyone.

Hence, we can see that the lack of this in society, would lead to less accountability and would inevitably lead to further cases of human rights violations within the community.

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Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

This is an excerpt from—

A.
the Bill of Rights.
B.
the Declaration of Independence.
C.
the Second Amendment.
D.
Article 1 of the Constitution.

Answers

A. The Bill of Rights

What is the cost of money?

Answers

it is the rate of interest or dividend payment on borrowed capital. Every sum of money used by corporations bears the cos
Penny Costs 1.76 Cents to Make in 2020

The authors of a research paper declare that "...using the aeriel images for each Enumerator Area, we numbered the dwellings, always starting in the most
South-West corner" (p. 170). What the authors are doing is..
A. stratifying the population
B. constructing a sampling frame
C. applying the principles of simple random sampling
D. reducing the standard error of measurement

Answers

The inference shows that the authors of a research paper declare that "...using the aeriel images for each Enumerator Area"simply means D. reducing the standard error of measurement.

What is an inference?

An inference simply means the conclusion that readers can deduce from the information given in a literary work.

In this case, the inference shows that the authors of a research paper declare that "...using the aeriel images for each Enumerator Area"simply means they are reducing the standard error of measurement. This is necessary in a research.

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Do we have enough evidence to support the idea that the ACME Altimeter has an unusually large error issue

Answers

There is no evidence to support the idea that the  ACME Altimeter has an unusually large error issue.

Why is there a lack of evidence for this?

This is due to the fact that the Altmeter is known to have a z score that is not unusual.

The distribution is shown to be skewed to the right and this would point to the fact tghat there is no unusual large error.

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Where would you find symbols to help you understand what it represents on a map?

A. Symbol

B. Plotting points

C. Map legend

D. Cardinal directions

Answers

B the plot points because the points tell you what they mean

Answer:

Map legend

Explanation:

the symbols tell you what they represent on a map

James Mill's work was not empirical.​

Answers

Answer:

Virtually everything that James Mill ever wrote had a pedagogical purpose. He was a relentlessly didactic writer whose most important essays—Government and Education, in particular—take the form of clipped, concise, deductive arguments.

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