ECO 2142 Study Guide - Quiz Guide: Monetary Base, Mark Carney, Elliott Wave Principle
9 Feb 2015
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Due date: monday, octobre 06, 2014 @ 16:00. Part i: short answers: answer all the questions. The mpc for a closed economy is 0. 75 and the net tax rate t = 0. 2. Autonomous consumption is , investment is , and government spending is . Show your calculations. (4 marks: what is the value of the autonomous expenditure multiplier? (4 marks) Provide a brief intuitive description (no rounds necessary) for why the multiplier in (ii) is larger than 1. (4 marks) If business pessimism about future levels of expenditure reduces investment expenditure by 50 what happens to equilibrium real gdp and the government"s budget balance? (4 marks) Use for the current level of income your result from point (iv). (4 marks) Suppose that person a deposits (cash) at bank a. Complete the following questions. (where necessary round your answer to the nearest cent. )
