A 5% increase in GDP which is currently $6,000,000,000 would be $300,000,000. A 5% increase in GDP would require less than a 5% increase in spending due to the multiplier effect. Every dollar of government spending will be spent and re-spent in the circular flow of economic activity. For example, if road construction is authorized, government spending for materials and workers will be spent again by the materials suppliers and the hired workers. Thus, the boost to the economy will be more than 5%. If the MPC (Marginal Propensity to Consume) is .8, then the MPS (Marginal Propensity to Save) must be .2, because together the percentages must add up to 1. Thus, the spending multiplier is 1 / (1 - MPC). In this example, it would be 1 / .2 or 5. That means that each dollar of government spending will generate 5 times that much GDP. To increase GDP by $300,000,000, therefore would take an increase of $300,000,000/5 or $60 million.
What is the code for ‘can’?
What is the code of “Recommendation Ruled”?
Select the figure from the options that can replace the question mark (?) and complete the pattern.
If the first letter from the left side of the word is removed, then how many words contain at least two consonants?
Statements:
Only orange is colour.
Mostly orange is fruit.
Some fruits are vegetables.
Conclusions:
I. No colour is a...
If ‘ GLOSSORY ’ is coded as 97533562 and ‘ GEOGRAPHY ’ is coded as 915968402 , then ‘ GEOLOGY ’ can be coded as
...Statements: E ≤ F < G; E ≥ H < I; H > J ≥ K
Conclusions:
I. H ≤ F
II. I ≥ K
III. H > G
In a code language, ' SLAIN ' is written as ‘ PKCNU ’ and ' DENT ' is written as ' VPGF '. How will ' CUBOID ' be written in that language?
...Out of the four given equations, the first three are solved based on a certain system. Find the correct answer for the unsolved fourth equation on the ...
WATER : RVOZM :: BOTTLE : ?