Answer:
a. Structures deficit decreased from $4.5 billion to a surplus of $2 billion, therefore the amount of fiscal restraint that occured between 1931 and 1933 is $6.5 billion.
b. Using the formula
Change in aggregate demand = 1/1- mpc x change in fiscal restraint
= 1/1-0.8×(-6.5)
= 1/0.2x(-6.5)
= 5x-6.5
= -$32.5 billion
Answer:
The correct option is C
Explanation:
Overconfidence bias is a tendency to hold a misleading assessment of our skills, intellect or talent.
Answer:
d. None of the above
Explanation:
if the marginal propensity to consume = 0.80, the Keynesian's multiplier = 1 / (1 - MPC) = 1 / (1 - 0.8) = 1 / 0.2 = 5
that means that if Congress wants to decrease real GDP by $100 billion and the Keynesian's multiplier is 5, then it should raise taxes by $20 billion. This way -$20 billion (taxes take away money from the economy) x 5 = -$100 billion.
Answer:
every single city has 2 - 3 Walmart's