Multiple Choice
If the MPC is 0.75,a $200 million transfer payment decrease ultimately
A) Reduces spending by $150 million.
B) Increases spending by $600 million.
C) Reduces spending by $600 million.
D) Increases spending by $150 million.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q1: From a Keynesian perspective,the way out of
Q2: A tax cut intended to increase aggregate
Q3: Which of the following gave the U.S.federal
Q4: To eliminate an AD shortfall of $100
Q5: According to Keynes,the level of economic activity
Q7: A limitation on fiscal policy is time.Which
Q8: Which of the following would cause the
Q9: Nearly half of the federal government's tax
Q10: The impact of fiscal stimulus on aggregate
Q11: With an upward-sloping AS curve,a decrease in