Germany injects $100 into the United States by purchasing new software. If the spending multiplier for the U.S. is 5, then the total increase in spending will be: a. b. C. d. $250. $10. $20. $500.

When price level is considered, the value of the multiplier will be less than that suggested by the over simplified version of multiplier. Why?

Discuss which of the following fall into the categories of consumption, investment,government expenditure and net exports from the Y= C+ I + G + NX   (X - M) identity , and sheathed the impact is to increase or decrease GDP a) Charles buys a second hand textbook from Tim  b) when Charles bought the book, he paid Sarah $10 to collect it from tim c) Thomas buys a new house  d) your firm sells meat to Indonesia  e) the fish and chips shop down the road buys fish to make meals for dinner f) the same shop buys deep fryer to fry fish for meals

The table below shows data for three fictitious countries. a. Compute the current MPC for each country. Instructions: Round your answers to two decimal places. Income and Consumption Data, Three Countries Change in Income (dollars) $8,900 30,400 5,120 Change in Consumption (dollars) $4,461 18,750 3,840 Country Adrup Bedrup Cedrup b. Which country has the highest marginal propensity to save (MPS)? (Click to select) c. If income in Bedrup increases by $240 and income in Cedrup increases by $480, which of the following statements is correct? MPC O Neither Bedrup nor Cedrup will save any dollars. O Bedrup will save more dollars. Cedrup will save more dollars. O Dollar savings will be the same for both Bedrup and Cedrup.

If the MPC is 0.9 what will happen to GDP if the government cut spending bt $2.

Suppose that imports decreases by 10 and the other components remain. Will the level of saving and consumption change as the economy adjusts to this change in imports? Explain.

The table below shows data for three fictitious countries. a. Compute the current MPC for each country. Instructions: Round your answers to two decimal places. Income and Consumption Data, Three Countries Change in Income (dollars) $9,830 40,000 5,870 Change in Consumption (dollars) $6,789 31,650 5,500 b. Which country has the highest marginal propensity to save (MPS)? (Click to select) c. If income in Bedrup increases by $360 and income in Cedrup increases by $690, which of the following statements is correct? Country Adrup Bedrup Cedrup MPC O Neither Bedrup nor Cedrup will save any dollars. O Cedrup will save more dollars. O Bedrup will save more dollars. O Dollar savings will be the same for both Bedrup and Cedrup.

For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap?  C = 2,500 + 0.75 (Y – T ) I p = 1,500 G = 2,000 NX = 300 T = 1,500 Y* = 19,900   Instructions: Enter your responses as whole numbers. Autonomous expenditure:    5175Multiplier:   4Short-run equilibrium output:   20,700Output gap:   (DO THIS PART)Autonomous expenditure would need to    (Click to select)   decrease   increase  by ____________to eliminate the output gap. (DO THIS PART

Assume that GDP is $6500, personal disposable income is $5600, and the government budget deficit is $400. Consumption is $3800, and the trade deficit is $100. Calculate the saving (S), investment (I), and government spending (G).

Consider two nations, Spendia and Savia. The MPC for Spendia is 0.8, and the MPC for Savia is 0.5. Assume that both nations experience an increase in gross investment (1) of $150 million at their existing GDP levels. Instructions: In part a, enter your answers for changes in income as a whole number and multiplier answers to 2 decimal places. In part b, round your answers to 2 decimal places. a. Considering the multiplier effect, what will be the overall increase in income (Y) for each nation? The increase in income for Spendia is $ 100 million, describing an expenditures multiplier of The increase in income for Savia is $ 100 million, describing an expenditures multiplier of b. Now assume that a third nation experiences an increase of $375 million in its income and its gross investment (I) increases by the same amount as Spendia and Savia, which is $150 million. The expenditures multiplier of this third nation is suggesting an MPC of 0.45