Multiple Choice
If the MPC in an economy is .75, government could shift the aggregate demand curve leftward by $60 billion at each price level by:
A) reducing government expenditures by $12 billion.
B) reducing government expenditures by $60 billion.
C) increasing taxes by $15 billion.
D) increasing taxes by $20 billion.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: If the government wishes to increase the
Q103: Refer to the diagram below.Which tax system
Q104: Which is regarded as an automatic stabilizer
Q105: Assume the government incurs a budget deficit
Q106: When the economy is at full employment:<br>A)one
Q107: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6686/.jpg" alt=" Refer to the
Q110: An economist who advocates discretionary fiscal policy
Q111: A major advantage of the built-in or
Q112: Automatic stabilizers will reduce tax revenues during
Q113: If the MPC in an economy is