Question

interpret the multiplier for each percent change.

a.) 1.37. b.) 0.51

Answer #1

a.) **1.37**

On using 1.37 as a multiplier it will result in increase of 37%.

For instance assuming our number, N = 100

using x = 1.37 as multiplier

New number = N*x = 137

Which is an increase 37% in the initial number 100.

b.) **0.51**

On using 51 as a multiplier it will result in a number which would be 51% of its initial value or a number which results in a decrease of (100-51 =49)%

For instance assuming our number, N = 100

using x = 0.51 as multiplier

New number = N*x = 51

Which is a decrease of 49% in the initial number 100.

or

the number is 51% of its initial value 100.

What is the multiplier?
The multiplier is the amount by which the change in ______
expenditure is magnified or multiplied to determine the change in
equilibrium expenditure and real GDP.
What does it determine?
For every dollar increase in ______ expenditure, the multiplier
determines the increase in real GDP.
A.
induced; induced
B.
induced; autonomous
C.
autonomous; induced
D.
autonomous; autonomous
Why does it matter?
The multiplier matters because we can use it to determine by how
much we should...

If the government spending multiplier is equal to 5, then the
tax multiplier (change in GDP divided by the change in taxes) is
equal to
a.
-2.5
b.
-4
c.
-5
d.
-6

A second order reaction, A>3B+C, has a rate constant of
1.37*10^-2M^-1s^-1. What will be the concentration of B after
50.0s, if [A]initial=0.250M, [B]initial=0.164 and
[C]initial=0.51.

A stock has an expected return of 12.4 percent and a beta of
1.37. The market expected return is 10 percent. What must the
risk-free rate be?
Fill in the values in the spreadsheet.
Input area:
Stock E(R)
12.40%
Stock beta
1.32
Market E(R)
10.00%
Output area:
Risk-free

Explain the basic idea of the expenditure multiplier ? and
explain how, could the consumers change the magnitude of the
multiplier.
Explain why the expenditure multiplier is greater than 1.
?

The multiplier is defined as
change in GDP − initial change in spending.
change in GDP/initial change in spending.
1 − MPS.
change in GDP × initial change in spending.
What is a bank run?
The movement of a check through the banking process.
Believing a bank is insolvent, depositors run to the bank to
withdraw their money.
None of the above is correct.
A sequence of good luck arising from a bank investing in
mortgage-backed securities.
A fund raiser...

Please answer All
The Keynesian spending multiplier effect means that a given
change in autonomous expenditures
A. will change equilibrium income by an amount
greater than the initial change in autonomous expenditures.
B. will change equilibrium
by an amount less than the initial change in autonomous
expenditures.
C. will change equilibrium income by an amount
equal to the initial change in autonomous expenditures.
D. will change the MPC by a multiple of the
initial change in autonomous expenditures.
E. will...

Say that investment increases by $60 for each interest rate drop
of 1 percent. Say also that the expenditures multiplier is 3. If
the money multiplier is 5, and each 5-unit change in the money
supply changes the interest rate by 1 percent, what open market
policy would you recommend to increase income by $360?
Open market (?) so that the monetary base (?) by $ (?).

Part 2:
For each of the following,
(a) calculate the elasticity,
(b) interpret your result (in terms of whether a good is
elastic/inelastic, and what the percentage change in quantity will
be in response to a 1% change in price), and
(c) indicate what would happen to revenues for this good if the
price was increased
In response to a 10% increase in price, the quantity demanded
of Bubly decreased by 20%
In response to a 5% decrease in price,...

Why does the money multiplier change if people hold cash? How
does it change? If people start holding more cash now than they did
in the past, is monetary policy more effective or less effective?
Draw a graph to show this effect.

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