Spending multiplier - Study guides, Class notes & Summaries

Why is international marketing important? correct answers Creates opportunities for: 1. COUNTRIES - economic advantage - growth of consumption, higher spending on economy, expansion of economy - economic multiplier - creates jobs, builds on existing capabilities. 2. FIRMS - opportunities for expansion, growth of profitability and revenues - larger market access, economies of scale - take advantage of differing wants and needs with increased economies of scope 3. PEOPLE - creates jobs, b...

monetary policy correct answers changes in the supply of money and the availability of credit to promote price stability, full employment and economic growth monetary policy correct answers the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals federal reserve correct answers the central bank of the U.S.: dual mandate to maintain full employment and keep prices stable; this is...

Intermediate Economics: Final Exam Multiple Choice Questions & Answers, rated A+ The prices for which of the following goods are included in both the GDP deflator and the consumer price index? A) goods bought by households B) goods bought by firms C) goods bought by governments D) goods bought by foreign households (i.e. exports) E) all of the above - -A) goods bought by households 2) Changes in GDP in the medium run are determined primarily by A) demand factors. B) supply factors...

concept: Golden Thread - Answer-set of concepts/ideas that articulate UX design process; 1. UX design is a problem solving discipline 2. UX is a process 3. UX is a research-based discipline 4. Qualitative research is more insightful than quantitative 5. Flow is important to creating a pleasant experience 6. UX is a tool for minimizing risk of wasting time/money and of building poor quality product 3 types of design that go into high quality products - Answer-- functional design - aesthet...

Econ 103: Exam 1 Study Guide with Complete Solutions!! it is reduced - ANSWER-when government spending, and lump sum taxes are reduced, what happens to GDP? automatic stabilizers - ANSWER-revenue and expenditure items in the federal budget that automatically change with the state of the economy in such a way as to stabilize the economy. multiplier effect - ANSWER-- the increase in final income arising from any new injection of spending. - the size of the multiplier depends upon ho...

ECON 2006 FINAL Exam Questions with 100% Correct Answers Smaller the value of the multiplier, because when people save more, they spend less, and decrease the overall spending multiplier - Holding everything else constant in an economy, the larger the MPS, the: A) smaller the value of the multiplier. B) larger the value of the multiplier. 5,000 + .7YD, because Autonomous consumer spending is 5,000; and MPC is .7 (100 dollar increase, spend 70) - Assume aggregate consumer spending equals...

PSU Econ 104 Final Exam – Brown (Graded A+) If the required reserve ration is 20%, the simple deposit multiplier is _______ A. 2 B. 5 C. 10 D. 20 -Answer-B. 5 1/.2 = 5 Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit, Bank A's reserves immediately increase by: A. $2,000 B. $8,000 C. $ 10,000 D. $50,000 -Answer-C. $10,000 This is how much money she puts in the bank. Imagine...

Smaller the value of the multiplier, because when people save more, they spend less, and decrease the overall spending multiplier Holding everything else constant in an economy, the larger the MPS, the: A) smaller the value of the multiplier. B) larger the value of the multiplier. 5,000 + .7YD, because Autonomous consumer spending is 5,000; and MPC is .7 (100 dollar increase, spend 70) Assume aggregate consumer spending equals $5,000 when aggregate disposable income is zero, and whe...

2021     Increase income to South African economy and increase income to South African producers of goods and services.   18. 1 Reference: Prescribed book PG 259 M3 is equal to M2 plus all long-term deposits of the domestic private sector with monetary institutions.   At the macro or aggregate level, the transactions demand for money is therefore a function of the total income in the economy. 1. 3 Reference: Prescrib...

automatic stabilizers - ANSWER-revenue and expenditure items in the federal budget that automatically change with the state of the economy in such a way as to stabilize the economy. multiplier effect - ANSWER-- the increase in final income arising from any new injection of spending. - the size of the multiplier depends upon household's marginal decisions to spend, called the marginal propensity to consume (mpc), or to save, called the marginal propensity to save (mps). marginal propensi...