Multiple Choice
If the MPC is 0.8 and government increases spending by $50 million, what will be the demand for goods and services generated by this increase?
A) $10 million
B) $40 million
C) $62.5 million
D) $250 million
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q52: What is the difference between monetary policy
Q76: What do supply-side economists believe a reduction
Q77: Assume that the MPC is 0.9. What
Q78: Which of the following is NOT an
Q81: Which statement best illustrates how the investment
Q82: During recessions, what do taxes tend to
Q83: Which of the following best defines the
Q84: Which statement is consistent with the Keynesian
Q85: Let x be the marginal propensity to
Q188: During recessions, the government tends to run