Essay
Suppose consumer confidence improves and as a result,consumer spending increases by $50 billion dollars.Assume households spend $0.80 of each extra dollar of income and save the remaining $0.20.Other things equal,calculate by how much spending will increase during:
a. the first round through the circular flow.
b. the second round through the circular flow.
c. the third round through the circular flow.
d. the fourth round through the circular flow.
Correct Answer:
Verified
a. Through the first round of the circul...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q5: Suppose consumer confidence declines and as a
Q6: Suppose that the demand for labour decreases
Q7: Since the 1950s,<br>A) Canada's business cycle fluctuations
Q8: From the Keynesian perspective,when during a recession
Q9: Explain why price and wage stickiness in
Q11: If households save $0.20 of each additional
Q12: From 1886 to 1955,the price of a
Q13: From the classical perspective,a decrease in output
Q14: Which of the following is an explanation
Q15: Research shows that prices tend to remain