Multiple Choice
A $1 billion increase in investment will cause a:
A) (1/MPS) billion increase in equilibrium GDP.
B) (MPS) billion increase in equilibrium GDP.
C) (1 - MPC) billion increase in equilibrium GDP.
D) (MPC - MPS) billion increase in equilibrium GDP.
Correct Answer:
Verified
Correct Answer:
Verified
Q37: The size of the simple multiplier is
Q39: Suppose the government finds it can increase
Q40: The most important determinant of consumption and
Q43: Suppose the consumption schedule is: C =
Q44: The investment-demand curve will shift to the
Q45: If the MPC is .70 and gross
Q46: Dissaving means:<br>A)the same thing as disinvesting.<br>B)that households
Q47: The consumption schedule shows:<br>A)a direct relationship between
Q74: As disposable income increases, consumption<br>A) and saving
Q188: The multiplier is equal to the reciprocal