Description
Answer the following questions and submit your answers in the Case Study drop box under the Assignments tab on Canvas. You may prepare your answers ahead of time and attach them as a MS Word document only. Please be thorough in your responses. Each question must be answered in the form of a paragraph (minimum of 5 sentences). You must include your Name, Section Number, and Title. Also, you are required cite your source(s) using MLA formatting.
Question 1: Demonstrate your knowledge of the Multiplier found in Figure 11.10 in your text.
Question 2: Define the Paradox of Thrift. How does savings impact the multiplier for future consumption?
Question 3: Visit the Bureau of Economic Analysis (www.bea.gov (Links to an external site.)) and determine what the current savings rate is for the United States of America. Using the “Multiplier” what is the effect of the current U.S. on future consumption (demand forecast)? Graph your result using the Aggregate Expenditures approach.
Case Study 3 is due by 11:30pm, Tuesday, December 17th via submission thru the drop box on Canvas.
The following rubric will be used grading ALL Case Studies:
Criterion
Outstanding
Proficient
More Effort Needed
Economic Insights
Thoughtfully and respectfully responded to the initial questions. Integrated readings and understanding of economic issues. Submitted on time.
13 points
Provided minimal responses to questions, limited integration of readings and understanding of economic issues. Not submitted on time.
1-12 points
Did not provide thoughtful responses to the questions or incorporate readings or understanding of economic issues. Not submitted on time.