Business, 23.06.2020 20:01 jlayne0605

Consider three closed economies. In the first economy, households spend $0.50 of each additional dollar they earn and save the remaining $0.50. In the second economy, households are satiated, so they do not spend anything of each additional dollar they earn (they save it all). In the third economy, households spend a whole dollar of each additional dollar they earn (they don't save anything). Which of the following statements is correct? a. In the second economy, the spending multiplier is greater than in the third economy. In the first economy, the spending multiplier is undefined
b. In the first economy, the spending multiplier is greater than in the second economy. In the third economy, the spending multiplier is undefined
c. In the third economy, the spending multiplier is greater than in the second economy. In the first economy, the spending multiplier is undefined
d. In the first economy, the spending multiplier is lower than in the second economy. In the third economy, the spending multiplier is undefined

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 02:00

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

Answers: 2

Answer

Business, 22.06.2019 02:30

Atax on the sellers of coffee will a. increase the price of coffee paid by buyers, increase the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. b. increase the price of coffee paid by buyers, increase the e ffective price of coffee received by sellers, and decrease the equilibrium quantity of coffee. c. increase the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. d. increa se the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and decrease the equilibrium quantity of coffee.

Answers: 3

Answer

Business, 22.06.2019 16:40

Consider two similar industries, portal crane manufacturing (pcm) and forklift manufacturing (flm). the pcm industry has exactly three incumbents with annual sales of $800 million, $200 million and $100 million, respectively. the flm industry has also exactly three incumbents, with annual sales of $500 million, $450 million and $400 million, respectively. which industry is more likely to experience a higher level of rivalry?

Answers: 3

Answer

Business, 23.06.2019 01:30

Should i run away or get a boyfriend and be loved again

Answers: 3

Answer

You know the right answer?

Consider three closed economies. In the first economy, households spend $0.50 of each additional dol...

Questions