Multiple Choice
In 2007, investment in France increased by 7 billion euros. Assume the price level was constant, the multiplier was 5 and the economy was at full employment. As a result, equilibrium expenditure
A) decreased by 35 billion euros.
B) decreased by .71 billion euros.
C) increased by 35 billion euros.
D) increased by 1.4 billion euros
Correct Answer:
Verified
Correct Answer:
Verified
Q46: Discuss how the marginal propensity to consume,
Q187: An increase in the price level shifts
Q280: When disposable income equals $800 billion, planned
Q281: Autonomous expenditure refers to<br>A) aggregate expenditure solely
Q282: If investment increases by $150 and, in
Q283: If investment decreases, the AE curve shifts<br>A)
Q286: As disposable income increases, there is a
Q287: If the multiplier is 6 and exports
Q289: The marginal propensity to save equals the<br>A)
Q290: Suppose that the slope of the AE