ECON 211 The following facts apply to a small, imaginary economy

Question # 00330887 Posted By: dr.tony Updated on: 07/03/2016 04:06 AM Due on: 07/03/2016
Subject Economics Topic General Economics Tutorials:
Question
Dot Image

Scenario 21-2. The following facts apply to a small, imaginary economy.
• Consumption spending is $5,200 when income is $8,000. • Consumption spending is $5,536 when income is $8,400.

  1. Refer to Scenario 21-2. The marginal propensity to consume for this economy is
    1. 0.650.
    2. 0.659.
    3. 0.650 or 0.659, depending on whether income is $8,000 or $8,400.
    4. 0.840.
  2. Refer to Scenario 21-2. The multiplier for this economy is a. 6.00. b. 6.25. c. 8.40 d. 9.00.
  3. Refer to Scenario 21-2. For this economy, an initial increase of $500 in government purchases translates into a
    1. $1,428.57 increase in aggregate demand in the absence of the crowding-out effect.
    2. $3,125.00 increase in aggregate demand in the absence of the crowding-out effect.
    3. $1,428.57 increase in aggregate demand when the crowding-out effect is taken into account.
    4. $3,125.00 increase in aggregate demand when the crowding-out effect is taken into account.
Dot Image
Tutorials for this Question
  1. Tutorial # 00326434 Posted By: dr.tony Posted on: 07/03/2016 04:07 AM
    Puchased By: 3
    Tutorial Preview
    The solution of ECON 211 The following facts apply to a small, imaginary economy...
    Attachments
    Solution-00326434.zip (81 KB)

Great! We have found the solution of this question!

Whatsapp Lisa