Multiple Choice
Suppose the marginal propensity to consume is 0.8. A $20 billion increase in government spending shifts the IS curve
A) to the right by $100 billion.
B) to the left by $20 billion.
C) to the left by $16 billion.
D) to the right by $2.5 billion.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q90: A higher price level causes us to<br>A)
Q91: Starting from equilibrium and using the ISLM
Q92: Which of the following influences the slope
Q93: Starting from equilibrium and using the ISLM
Q94: A weakness of the simple Keynesian model
Q95: The LM curve shows a series of
Q96: The slope of the IS curve will
Q97: The slope of the LM is not
Q99: "A lower price level may lower the
Q100: Along an LM curve at higher income