### Free Educational Resources

• > ECN 360 HOMEWORK SOLUTIONS
+

# ECN 360 HOMEWORK SOLUTIONS

##### Rating:
(1)
• (1)
• (0)
• (0)
• (0)
• (0)
Author: simmons96 96
##### Description:

http://theperfecthomework.com/ecn-360-homework-solutions/

12-2. Consider the table below when answering the following questions. For this hypothetical economy, the marginal propensity to save is constant at all levels of real GDP, and investment spending is autonomous. There is no government. (See pages 253–263.)
12-4. Calculate the multiplier for the following cases.
(See page 267.)

a. MPS = 0.25

b. MPC = 5/6

c. MPS = 0.125

d. MPC = 6/7

12-6. The marginal propensity to consume is equal to 0.80. An increase in household wealth causes autonomous consumption to rise by \$10 billion.
By how much will equilibrium real GDP increase at the current price level, other things being equal? (See page 267.)

12-12. Consider the diagram below, which applies to a nation with no government spending, taxes, and net exports. Use the information in the diagram

(more)
##### Try a College Course Free

Sophia’s self-paced online courses are a great way to save time and money as you earn credits eligible for transfer to over 2,000 colleges and universities.*

No credit card required

26 Sophia partners guarantee credit transfer.

226 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 21 of Sophia’s online courses. More than 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.

Tutorial