Start learning 50% faster. Sign in now
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.
Select the option that is related to fourth number in the same way as the first number is related to the second number and the fifth number is related t...
Select the option that is related to the third word in the same way as the second word is related to the first word.
(The words must be conside...
Select the option that is related to fourth number in the same way as the first number is related to the second number and the fifth number is related t...
Which two numbers from amongst the given options should be interchanged to make the given equation correct?
(240 ÷ 2 + 5) × 8 + 15 × 8 = 100
8, 20, 48, 108, 232, 482
Select the option that is related to third letter cluster in the same way second letter cluster is related to first letter cluster.
DECIMAL: Z...
If 49 @3 = 58 and 44 @ 13 = 213, then 52 @ 5 = ?
In a code language, 'TANYA' is coded as BUBZO and 'RAHUL' is coded as BSMVI. How will 'MOHIT' be coded in the same language?
Select the option in which the numbers are related in the same way as are the numbers in the given set.
(15, 48, 98)