![Business](/tpl/images/cats/ekonomika.png)
Business, 02.07.2019 19:10, jaqwannewsome
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 determined that every 0.10 (one-tenth) percentage-point change in the market interest rate generates a change in planned investment expenditures equal to $1 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 $150 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? )
![answer](/tpl/images/cats/otvet.png)
Answers: 2
Other questions on the subject: Business
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 11:10, nataliahenderso
Which feature is a characteristic of a corporation?
Answers: 1
![image](/tpl/images/cats/ekonomika.png)
Do you know the correct answer?
currently, a government's budget is balanced. the marginal propensity to consume is 0.80. the govern...
Questions in other subjects:
![Konu](/tpl/images/cats/obshestvoznanie.png)
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/en.png)
![Konu](/tpl/images/cats/ekonomika.png)
![Konu](/tpl/images/cats/fizika.png)
![Konu](/tpl/images/cats/biologiya.png)
![Konu](/tpl/images/cats/informatica.png)
![Konu](/tpl/images/cats/ekonomika.png)