--%>

Change in GDP

How much of modify in GDP will result if firms raise their level of investment by $8 billion and the MPC is .80?  If the MPC is .67?

E

Expert

Verified

If MPC is .80, change in GDP is $40 billion (5 x $8 = $40)

   Related Questions in Finance Basics

  • Q : Rate of inflation Normal 0 false false

    Normal 0 false false

  • Q : Explain non diversifiable risk and how

    Explain non diversifiable risk? How is it measured? Unless the returns of one-half the assets into a portfolio are entirely negatively correlated along with the other half-that is extremely unlikely-some risk will

  • Q : Explain Continuously Vacant Positions

    Continuously Vacant Positions: On July 1, the positions which were continuously vacant for six successive monthly pay periods throughout the prior fiscal year are abolished by the State Controller's Office. The six successive monthly

  • Q : Semiannua compounding It is now January

    It is now January 1. You plan to make a total of 5 deposits of $600 each, one every 6 months, with the first payment being made today. The bank pays a nominal interest rate of 14% but uses semiannual compounding. You plan to leave the money in the bank for 10 years. How much will be in your account

  • Q : What is Workload Budget Adjustment

    Workload Budget Adjustment: Any adjustment to the presently authorized budget obligatory to maintain the level of service needed to fund a Workload Budget, as stated in the Government Code Section 13308.05. A workload budget adjustment is as well term

  • Q : Investors prospects of growth Why might

    Why might investors overestimate the prospects of growth companies and underestimate value companies?

  • Q : Define Obligations Obligations : The

    Obligations: The amounts that a governmental unit might legally be needed to pay out of its resources. Budgetary authority should be obtainable before obligations can be formed. For budgetary aims, obligations comprise payables for goods or services r

  • Q : Translate enterprise value in net

    Describe the adjustments essential to translate enterprise value to the net present value of common equity.To get the value of the company's common stock, add up the value of the firm's present assets to the enterprise value (this generates the

  • Q : How long do business cycles remain

    Normal 0 false false

  • Q : Determine sizes of the MPC- the MPS and

    Normal 0 false false