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Currently, a​ government's budget is balanced. The marginal propensity to consume is 0.80. The government has determined that each additional ​$10 billion in new government debt it issues to finance a budget deficit pushes up the market interest rate by 0.20 percentage points. It has also been determined that every 0.10 ​(​one-tenth​) ​percentage-point change in the market interest rate generates a change in planned investment expenditures equal to ​$4 billion.​ Finally, the government knows that to close a recessionary gap and take into account the resulting change in the price​ level, it must generate a net rightward shift in the aggregate demand curve equal to ​$200 billion.
Assuming that there are no direct expenditure offsets to fiscal​ policy, calculate the increase in government expenditures necessary to close the recessionary gap. ​ (Hint: How much private investment spending will each​ $10 billion increase in government spending crowd​ out?) ​

$ ___ billion. ​(Enter your response rounded to two decimal​ places.)

Answers

Answer 1

The amount of ​$25.00 billion will be the private investment spending that each​ $10 billion increase in government spending will crowd​ out.

What is the explanation on government expenditure?

When the government expenditure increased by​ $1 billion, the planned investment expenditure will falls by ​​$0.20 billion., hence, for each​ $1 billion increase in government​ spending, there is a net change in intial spending​ of $0.2 billion

Also, the aggregate demand curve will shift to the right by the net change in spending multiplied by the​ multiplier, which equals 1- MPC.

Hence, the net increase in AD due to the​ $1 billion increase in government expenditure is equals what is known as the net multiplier.

Therefore, the amount of ​$25.00 billion will be the private investment spending that each​ $10 billion increase in government spending will crowd​ out.

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Related Questions

In a linear production function, inputs are Multiple choice question. normal goods. perfect substitutes. inferior goods. perfect complements.

Answers

An input are considered a perfect substitutes in a linear production function.

What is a perfect substitutes?

As the factors of production are known as the inputs used to produce an output, the perfect substitutes means the item that can be used in exactly the same way as the good or service it replaces.

Hence, in the linear production function, the input are considered as a  perfect substitutes.

Therefore, the Option B is correct.

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Supply-side fiscal policies focus on shifting the long-run aggregate supply curve to the right, resulting in a _____ price level and _____ unemployment.

Answers

Supply-side fiscal policies focus on shifting the long-run aggregate supply curve to the right, resulting in a stabilize price level and  reduce unemployment.

Through adjustments to government expenditure and taxation, fiscal policy affects aggregate demand. These elements have an impact on employment and household income, which in turn affect consumer spending and investment.The amount of money in an economy changes as a result of monetary policy, which also affects interest rates and inflation.

Concentrate on moving LRAS to the right to

Encourage growth Lower unemployment Stabilize the market Has a slower economic impact than initiatives that raise AD

What shifts long run aggregate supply?Changes in Long-Run Aggregate Supply. The position of the long-run aggregate supply curve is determined by the aggregate production function and the demand and supply curves for labor. A change in any of these will shift the long-run aggregate supply curve.

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GIVING BRAINLIEST!!!!!!! AND 35 POINTS!!!!!!!!!

The table below reports the actual inflation rate from 2016 to 2020. Complete the table, assuming people form expectations adaptively. Give all answers to two decimals.


Look back at the table. Assuming people form expectations adaptively, which of the following statements are correct?

Answers

The correct options are B). when inflation is increasing from year to year, people tend to overestimate inflation, D), Monetary policy can reduce unemployment only if the policy is expected and E). when inflation is decreasing from year to year, people tend to underestimate the inflation.

What is adaptive expectations?

Adaptive expectation is an economic theory that gives the importance to the past events for the predictions of the future outcomes.

Solution:-

Year     Actual Inflation rate    Expected Inflation rate      Error

2016        3%                                       3%                                 0%

2017        5.00%                                 3%                                2.00%

2018        6.50%                                 5.00%                         1.50%

2019        4.50%                                 6.50%                         2.00%

2020       3.50%                                 5.50%                           2.00%

Adaptive expectation states that if inflation increased in the past year, people will expect higher rate of inflation in the next year.

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Suppose a 30-year fixed-rate mortgage loan was issued at a nominal interest rate of 5.5% when the expected inflation rate was 2.5%. Eight years later, the actual inflation rate was 4%. After eight years, the real interest rate was _____ and _____ benefited from the actual inflation rate being higher than expected.

Answers

Answer:

7.5 and people will benefit

Explanation:

the more the inflation goes high the more the interest rate move forward and values high

What is the significance of re-conceptualizing the data provided by the UCR relating to the facilitators and barriers to reporting

Answers

Significance of re-conceptualizing the data provided by the UCR is to providing great overview of trends in crime.

More about UCR:

The FBI compiles information on crimes in the US for the Uniform Crime Report. All local law enforcement agencies inform the FBI of these crimes. consists of 8 index offenses. More than 18,000 city, university and college, county, state, tribal, and federal law enforcement entities have provided data to the UCR Program. Agencies voluntarily join and report their crime statistics to the FBI's UCR Program or directly through a state UCR program

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Mitchell's employer offers a program, not attached to an insurance plan, which allows employees to save pre-tax dollars to cover certain medical costs. What type of program is this

Answers

This is a program of flexible spending accounts.

A flexible spending account (also known as a flexible spending arrangement) is a special account that puts the money you use to pay for certain medical expenses out of your pocket. There is no tax on this money. That means saving an amount equal to the tax you would have paid for the money you set aside.

Employer agreement. You can pay a lot of medical expenses in tax-exempt dollars. Permissible costs include insurance out-of-pocket and deductions, eligible prescription drugs, insulin, and medical devices.

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_______________________ that require the depositor to commit to leaving their funds in the bank for a certain period of time, in exchange for a higher rate of interest are also called ________________.

Answers

Answer:

A certificate of deposit; a time deposit

Explanation:

Winchell wrote a contract that involves two separate performance obligations. Winchell cannot estimate the stand-alone selling price of product A. Product B has a stand-alone selling price of $100. The price for the combined product is $120. How much of the transaction price would be allocated to the performance obligation for delivering product A

Answers

amount of the transaction price that would be allocated to the performance obligation for delivering product A is $17.1

Given :

Stand alone price of product B = $100

Price of the combined product = $120

To Find :

Stand alone price of product A

Solution :

Transaction price is defined as the amount of consideration expected for the exchange of goods or services to a consumer. A transaction price can be fixed or vary based on timing or performance factors.

Now,

Stand alone price of Product A = 120 - 100 = $20

The allocation ration for the product A and B =

Stand alone price of product A

Stand alone price of product B

20 = 1:5

100

Allocated to the performance obligation for delivering product A =

$120 x 1

1+6

$17.1

So the answer is $ 17.1

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When the price of hot dogs decreases, what happens in the market for the complementary good of hot dog buns?.

Answers

I’m pretty sure it’s that the market for complementary goods increase

A quota is Group of answer choices an excess of exports over imports. a tax placed on imports. a limit on the quantity of imports. a tax on exports to other countries.

Answers

A quota is C) a limit on the number of imports.

A quota is a central authority-imposed change restriction that limits the wide variety of economic value of products that a country can import or export for the duration of a specific period. Nations use quotas in global change to assist regulate the extent of trade between them and other nations.

A quota is a tax levied towards a selected desirable being imported into a country. A quota limits the amount of a good that may be imported into a country. A tariff is a tax placed on an import.

A quota, in worldwide change, is an authorities-imposed limit on the amount, or in fantastic instances the value, of the goods or services that can be exported or imported over an exact period of time.

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A(n) ________ is a legal agreement signed by a stockholder allowing someone else to vote on his or her behalf at the corporation's annual meeting. Question 11 options: voting contract agency contact contingency contract proxy None of these

Answers

Answer:

stockholder voting right

Explanation:

Cashmere Soap Corporation had the following items listed in its trial balance at 12/31/2021:
Currency and coins $ 560
Balance in checking account 3,400
Customer checks waiting to be deposited 2,700
Treasury bills, purchased on 11/1/2021,mature on 4/30/2022 2,000
Marketable equity securities 9,400
Commercial paper, purchased on 11/1/2021,mature on 1/30/2022 4,400
What amount will Cashmere Soap include in its year-end balance sheet as cash and cash equivalents

Answers

Answer:

5$

Explanation:

Can someone Plss answer this question for me

1) Imagine you are the Chairman of the Federal Reserve facing the following scenario:
The economy is at full employment. Unemployment is low, but prices are rising at a
rate of 5% per quarter (every 3 months).
In a paragraph, explain what monetary policy action you would take. Be sure to describe both your
actions and what effects they will have on the economy.

Answers

If I were the Chairman of the Federal Reserve, I would take steps to curtail the rising inflation. I would achieve this by carrying out a open market sale. This would reduce the supply of money in the economy and reduce inflation.

What is an open market sale?

Open market sale is a type of contractionary monetary policy. Contractionary monetary policy are steps taken by the government to reduce the supply of money in the economy.

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When you make an electronic payment from your checking account, the bank __________ identifies the bank where you have an account.

Answers

When you make an electronic payment from your checking account, the bank routing number identifies the bank where you have an account.

What is a checking account?

This is a deposit account which enables one to withdrawal and deposit, which is also known as demand account.

One of the importance of checking account is that it makes one's money available when and where you need it while also keeping it safe.

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In Thailand, it is required that any milk product sold in the country by a foreign company must use the milk that is at least 50 percent produced by Thai dairy farmers. What economic risk is faced by the international producers of milk products in this situation? tax controls export restrictions exchange controls price controls local-content laws

Answers

The multinational producers of milk products are exposed to an economic risk due to local-content laws in this circumstance.

What do local content laws cover?

These regulations state that a corporation must obtain a predetermined percentage of the ultimate cost of a good or service from domestic companies, either through local purchases or local production or development of the good or service. LCRs are a tool used by governments in an effort to safeguard and advance domestic industry.

What sort of local content requirement might there be?

A preference for qualified locals when hiring is an illustration of a fairly standard local content criterion. Some nations may mandate the employment of its citizens at a certain percentage.

An Union local content law: what is it?

Local content requirements (LCRs), which are rules enforced by governments and compel businesses to use domestically produced goods or domestically supplied services in order to operate in an economy, are the measure with the fastest growing adoption rate.

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When the price of softballs is high, a ________ in price will raise total revenue. When the price is low, the seller should ________ the price to increase total revenue.

Answers

A Decrease in price will raise total revenue. When the price is low the seller should raise the price.

Demand vs Supply

An increase in demand is inversely proportional to an increase in price, therefore as the price of softball increases the demand for softball will reduce, therefore to raise total revenue the seller should decrease price of the softball as that will lead to an increase in demand for the softball.

Hence we can conclude that A Decrease in price will raise total revenue. When the price is low the seller should raise the price.

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The Starr Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. If investors require a return of 11 percent on the stock, what is the current price

Answers

The current price is the most recent selling price of a stock, currency, commodity, or precious metal that is traded on an exchange and is the most reliable indicator of that security's present value.

According to the Question.

The Current Price would be $37.63

Investors and analysts use a variety of techniques to figure out the intrinsic value of common stock. A common technique is dividend discounting, which uses the needed rate to reduce the cash dividend.

Calculation for the current price

Current Price = Dividend × ( 1 + Growth Rate )

                                Return - Growth Rate

Current Price = $2.15 × ( 1 + 5% )

                               11% - 5%

Current Price = $2.15 × 1.05

                                6%

Current Price = $2.2575

                             0.06

Current Price = $37.63

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Alex manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. His employees regularly deal with customer annoyance over the frequent price changes. This is an example of the of inflation.

Answers

Menu costs.

What Exactly Does Inflation Mean?

A measure of purchasing power is inflation. It is described as the rate of change in goods and service prices over a predetermined time period (usually a year). Simply put, consumer spending decreases when inflation increases because people can no longer afford to make as many purchases. Demand-pull inflation, cost-push inflation, and inherent inflation are the three basic sources of inflation.

The beneficiaries of inflation?

Borrowers gain from inflation because it enables them to repay lenders with money that is now worth less than it did when they first borrowed it. When inflation raises prices, there is a greater demand for loans, which leads to higher interest rates that are advantageous to lenders.

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1. Explain why in a free market
economy, all consumers do not
have equal chance in determining
what is produced.
2. Explain the view that in a free
market economic system, prices
influence the allocation of
resources.

Answers

1. In a free market economy, not all consumers have the same chance to determine what is produced because this determination is based on the industries' strategy.

That is, the producers of goods and services will develop a way to generate profit by producing and selling certain products that will reach a greater number of consumers.

2. In a free market system, prices will influence resource allocation because the price consumers are willing to pay for a good demonstrates the value of the product.

This means that the more consumers willing to pay higher prices for a product, the more companies will allocate resources to produce such products valued by consumers.

What is a free market system?

It is an economic system where there is less government intervention, that is, goods and services are traded through a private property system, where there are various companies whose purpose is to generate profit.

Therefore, the free market is influenced by the law of supply and demand, which defines market dynamics, price, quantity supplied and competitiveness.

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On average, consumers spend only about _______________ seconds deciding to buy one brand as opposed to another branded option from the same product category. On average, consumers spend only about _______________ seconds deciding to buy one brand as opposed to another branded option from the same product category.

Answers

On average, consumers spend only about 13  seconds deciding to buy one brand as opposed to another branded option from the same product category.

What is consumer purchase behavior?

This is the term that is used to refer to the behavior of the buyers and consumers of products and the way they make there decisions to buy.

It is said that they spend 13 seconds in making the decision to buy a different brand.

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My bank accidentally deposited $10k in my account. I reported it, then moved it to my savings account. Have i done enough?.

Answers

The right decision would have been leaving it in the bank account so that the bank can deduct it after they discovered the error.

What is the norm about the accidentally deposit?

Normally, when there is an accidentally deposit , the bank will remove the duplicate transaction.

Hence, It is important not to spend the accidental deposit but rather, one can contact the bank right away and report the error.

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An investor is analyzing two firms in the same industry which are basically identical. She is looking for long-term performance from her investment. Both firms are undergoing restructuring. One firm is involved in substantial downsizing, and the other firm is undertaking aggressive downscoping. The investor should invest in the:

Answers

The investor should invest in the aggressively downscoping firm.

What is Downscoping?Downscoping is the process of getting rid of enterprises that are unrelated to the company's core business through spinoffs, divestitures, or other methods.To focus on the company's core businesses, in other words, is what downsizing entails.Although downsizing is frequently a part of downscoping, the former is designed to prevent the loss of important people from vital businesses (because such losses can lead to the loss of core competencies).What is Downsizing?One of the most popular restructuring techniques used globally has been downsizing.Downsizing signifies a reduction in the workforce and, occasionally, the number of operational units, although it may or may not also indicate a shift in the portfolio's business mix.Who is an Investor?An investor is a person or a group of people who invest money in the hope of someday making a profit.This wide term encompasses everyone, including Wall Street institutions, startup accelerators, and even relatives who lend money to one another.How many types of Investors are there?

There are namely 3 types of investors:

Pre- Investor: This is a general word for those who haven't started investing yet. It covers friends, relatives, and close personal contacts but excludes all professional investors.These are folks that are new to investing but may have money they are willing to put into your company.Passive Investor: Passive investors adopt a buy-and-hold strategy that they anticipate will pay off in the long run and restrict the amount of hands-on management they individually provide to the assets they own.A passive investor will defer to the operational and financial decisions made by the management team rather than taking an active part in the management of a firm.Active Investor: A hands-on approach is taken by active investors while managing their portfolios.These investors want to have a say in how their funds are managed. In a private equity setting, active investors could bring in new personnel to support management teams and assertively alter the organizational structure of a company.

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A note receivable (promissory note): Group of answer choices Cannot be used in payment of an account receivable. Is a loan or written promise to pay a specified amount of money at a certain date. Is another name for an installment receivable. Is a liability to the payee. Is a short-term investment for the maker.

Answers

A note receivable (promissory note) : Is a loan or written promise to pay a specified amount of money at a certain date.

What are Notes Receivable?

A note receivable is also known as a promissory note.

Notes receivable are a balance sheet item that records the value of promissory notes that a business is owed and should receive payment for. A written promissory note gives the holder, or bearer, the right to receive the amount outlined in the legal agreement. Promissory notes are a written promise to pay cash to another party on or before a specified future date.

When the note is due within less than a year, it is considered a current asset on the balance sheet of the company the note is owed to. If its due date is more than a year in the future, it is considered a non-current asset.

The interest income on notes receivable is recognized on the income statement. Therefore, when payment is made on a note receivable, both the balance sheet and the income statement are affected.

Thus, we can conclude that the correct option is B. A note receivable (promissory note) : Is a loan or written promise to pay a specified amount of money at a certain date.

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Who should be responsible for establishing the credit limit for new customers, or increasing an existing customer's credit limit

Answers

I wish I can help but I can't sorry

l

A cost that remains unchanged in total over a wide range of activity, but jumps in total when the range limit is reached is a ______ cost

Answers

A cost that remains unchanged in total over a wide range of activity, but jumps in total when the range limit is reached is a fixed cost.

Fixed costs, sometimes referred to as indirect costs or overhead costs in accounting and economics, are costs incurred by a corporation that are independent of the volume of goods or services the company produces. They frequently occur again and again, like monthly rent or interest payments. They frequently also count as capital expenses.

When a cost is referred to as fixed, it means that it doesn't fluctuate based on how many products or services are produced or sold. Costs associated with a company's operations that must be covered regardless of the company's specific operations are known as fixed costs.

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NASA is conducting an experiment to find out the fraction of people who black out at G forces greater than 6. Step 1 of 2: Suppose a sample of 585 people is drawn. Of these people, 274 passed out at G forces greater than 6. Using the data, estimate the proportion of people who pass out at more than 6 Gs.

Answers

The proportion of people who pass out at more than 6 Gs is 0.468.

How to calculate the proportion of people?

The percentage of participants in this sample who pass out at G forces greater than 6 is calculated by dividing the number of participants who passed out by the sample size.

No. of people whose sample is drawn = 585

No. of people who passed out at G forces greater than 6 = 274

The proportion of people who pass out at more than 6 Gs = 274/585

                                                                                                  = 0.468

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Assembly or production of finished products, producing the right amount of product, and ensuring that finished products meet specific quality, cost, and customer service requirements are all important issues that are most closely related to:

Answers

Answer:

Manufacturing

Explanation:

If a court orders the agent to return funds earned as a result of breaching their duty of loyalty to the principal, this is known as_____.

Answers

If a court orders the agent to return funds earned as a result of breaching their duty of loyalty to the principal, this is known as Disgorgement.

What is Disgorgement?A remedy demanding the forfeiture of any profits made as a result of an individual's illegal or unjust activity by a person who benefits from such conduct. This solution's main goal is to stop unfair enrichment contracts. In order to prevent unfair enrichment, the court may order a defendant to forfeit whatever income they made as a result of wrongdoing or illegal activity.This equitable remedy is called disgorgement. The plaintiff need not have endured any sort of damages in order to receive disgorgement. The defendant must have been negligent in order for the plaintiff to seek disgorgement for the harm sustained.Disgorgement is an option for a contract breach, but only under unusual circumstances

Hence, Disgorgement is the legal term for when a court compels an agent to repay the money they earned for failing to uphold their duty of loyalty to the principal.

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Which trend involving corporate social responsibility involves advertising that focuses on the values, behavior, and beliefs of a company

Answers

Purpose marketing or​ pro-social marketing trend involving corporate social responsibility involves advertising that focuses on the values, behavior, and beliefs of a company.

What is Purpose marketing or​ pro-social marketing?

Marketing's goal is to bring in money for a brand, business, or organization. In close coordination with their sales team, marketing professionals and teams accomplish this by implementing strategic digital initiatives that increase traffic, quality leads, and revenues.

Three main goals of marketing include:

Attracting the interest of your intended audience. Convincing a customer to buy your product.Offering the customer a clear, simple, and low-risk action.

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The inflationary spiral explains the causes and effects of high inflation. The spiral usually begins with an increase in demand. What is the direct effect of this increase?.

Answers

The inflationary spiral explains the reasons and outcomes of high inflation. The spiral normally starts offevolved with a growth in demand. what's the direct impact of this growth on producers elevating expenses to maintain to make income.

Rate spirals are a macroeconomic theory used to give an explanation for the causal courting among rising wages and rising fees or inflation. The price spiral indicates that rising wages will increase disposable earnings, grow demand for goods, and lift expenses.

Higher expenses boom the demand for better wages, leading to higher manufacturing costs and similarly upward stress on costs, developing a conceptual spiral.

A rate Spiral is a monetary time period that describes the phenomenon of price increases because of rising wages. When people receive wage will increase, they demand greater items and offerings, which ends up in higher charges. Growing wages efficaciously boom overhead fees, that are passed on to purchasers at better expenses. It is basically an everlasting loop or cycle of the regular rate will increase.

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