menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Principles of Macroeconomics
  4. Exam
    Exam 16: The Influence of Fiscal Policy on Aggregate Demand
  5. Question
    If the MPC Is 0
Solved

If the MPC Is 0

Question 14

Question 14

Multiple Choice

If the MPC is 0.6 and government increases spending by $50 million, what will be the demand for goods and services generated by this increase?


A) $20 million
B) $30 million
C) $83.3 million
D) $125 million

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q9: As the MPC gets close to 1,

Q10: If the MPC = 3/4, what is

Q11: Which statement do opponents of active stabilization

Q12: According to supply-side theories, what happens if

Q13: Suppose the closed economy is in long-run

Q15: Which policy would Keynes's followers support when

Q16: Consider the income-expenditure identity in a closed

Q17: If the MPC = 0.8, what is

Q18: If there are automatic stabilizers but no

Q19: If the multiplier is 5, what is

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines