Multiple Choice
If an economy's marginal propensity to consume is 0.9 and the marginal propensity to import is 0.1, then an increase in government spending of $2,000 will increase income by:
A) $20,000.
B) $4,000.
C) $10,000.
D) $2,222.
Correct Answer:
Verified
Correct Answer:
Verified
Q87: Suppose investment falls by $200 and equilibrium
Q88: Uncertainty about the future is likely to
Q89: The balanced budget multiplier equals:<br>A) 1.<br>B) 1/
Q90: Which of the following is an example
Q91: If the consumption function is C =
Q93: In a closed economy with no government,
Q94: If the marginal propensity to save is
Q95: Assume that consumption is represented by the
Q96: The multiplier for taxes can be calculated
Q97: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5231/.jpg" alt=" -Refer to Table