The US government sends $1,550,000,000 in tax rebatestimulus checks to American citizens. On average,Americans spend 88% of their income and save the rest.Answer the following questionsWhat is the multiplier based upon American spendingbehavior? 113.6(round to the seconddecimal place if necessary)What is the total impact of this injection?1761necessary)(round to the nearest dollar if

answer is given belowExplanation:To calculate the multiplier based on American spending behavior, we…

Answered: The US government sends $1,550,000,000…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.4P

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can you tell me which questions i've gotten wrong? This is a practice quiz that doesnt tell you the correct answers at the end. thanks 1- An increase in business investment spending has the same effect on the level of ad as an increase in the same amount of government spending. -true 2- If the government increased taxes by $10 at the same time it increased spending by $10 there would be no effect on the level of AD. 3- If social security payments to retirees increase, AD will increase and raise Y*. -true 4- Tax cuts in the classical range of the AS will stimulate output and unemployment -false 5- Increasing welfare payments by borrowing money to do so will increase AD- true 6- if the mpc increases, the multiplier decreases- false 7- if the mps increases the multiplier decreases -true 8- part of the cost of growing government budget deficits is and “opportunity cost” of what else could have been done with the money, particularly if the borrowing is used to increase consumption spending.…
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